What Not to do When Preparing to File Bankruptcy?

25 Jul What Not to do When Preparing to File Bankruptcy?

Certain actions prior to a filing can cause problems in a bankruptcy case. These problems can range anywhere from having certain debts be declared non-dischargeable, having a general discharge denied, having payments or transfers reversed, among other things. Once you have made the decision to file bankruptcy, there are a number of things you should not do in the weeks or months leading up to your case, including the following:
1. Don’t transfer any property to family members for less than fair market value.
2. Don’t pay off debts owed to family-members or business associates prior to filing bankruptcy.
3. Don’t attempt to hide assets or otherwise defraud your creditors.
4. Don’t use credit, take out cash advances or make any balance transfers on your credit cards.
5. Don’t intentionally damage property that you plan on surrendering to your creditors.
6. Don’t give any gifts or property to anyone without first consulting your bankruptcy attorney.
8. Don’t take out any loans or money from your 401k or retirement plan.
9. Don’t hide any debts, especially those owed to relatives and friends (even if you plan on paying them back after you receive a discharge).
10. Don’t misrepresent facts to your attorney.

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Nicholas Ortiz, Boston Bankruptcy Attorney

From Attorney Ortiz: We have been helping consumers and small businesses in Massachusetts successfully navigate through the bankruptcy process since 2002. We offer free initial consultations and payment plans. Call us at 617-716-0282 to discuss your debt relief options. Mention the Bankruptcy Law Network when you call!
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