Things To Avoid Before Filing For Bankruptcy

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If bankruptcy is something you are highly considering right now, your lawyer will talk to you about things you should do before you file. He or she may also speak to you about things you should not do. If you do the wrong things before you file, you may jeopardize your case. Therefore, you must avoid the following things if you plan to file for bankruptcy soon.

Do Not Buy Unnecessary Things with Your Credit Cards

The first thing to avoid is using your credit cards. While you can still use them to purchase necessities, the primary thing you should avoid is using them for frivolous purchases. If you buy things you do not need before you file for bankruptcy, your actions may come across as fraudulent. If this occurs, the trustee could dismiss your case right away, leaving you without any solutions.

Do Not Transfer Your Money

Two, you should not attempt to transfer any money you have out of your accounts. For example, if you have a bank account that has a $2,000 balance, you might want to get rid of this money to avoid losing it in your bankruptcy case. The problem with this is that you cannot do this. If you take the money out and cannot account for it, the trustee may view this action as fraudulent. The result might be a dismissed case.

Do Not Pay Your Debts

While you should continue paying your everyday expenses, you should not pay your creditors. If you do, you might end up with a dismissed case. Paying creditors just before filing for bankruptcy may appear fraudulent for one reason. It can seem as though you are showing preferential treatment to one creditor over the others, and this is forbidden in bankruptcy cases.

Do Not File a Lawsuit

You should also avoid filing any lawsuits before using bankruptcy. If you file a lawsuit before you file your bankruptcy case, the trustee may take the proceeds from the case. If you want to avoid losing the money you would receive from the lawsuit, you should wait until after you file for bankruptcy to pursue it. If you wait, you will not lose the proceeds from the lawsuit.

This list is not extensive. There may be other things you must avoid, too. Talk to a bankruptcy law attorney if you have questions about what to avoid and what to do when filing for bankruptcy.