The Five Things You Must Not Do Before Filing for Bankruptcy

You don’t want to make a mistake that can jeopardize your bankruptcy filing and possibly disqualify you for bankruptcy. Here are Five Don’ts that you must NOT do before filing for bankruptcy:

1. Before filing for bankruptcy : Don’t transfer assets. Don’t go out and sell your car for cash before you file for bankruptcy. That’s a red flag and trustees will potentially go after the person to who you sold the vehicle.before filing for bankruptcy

2. Before filing for bankruptcy Don’t pay back family, friends or personal loans. If you get preferential treatment to one creditor over another, the trustee is going to go after that person and ask that they give back the money. If your mom or dad gave you money, that’s considered to be a loan. When you file for bankruptcy all the people and institutions that you owe money too, like your mom and dad, become creditors, you can’t give your mom and dad preferential treatment over other creditors. Don’t pay back any loans, especially personal loans to family or friends, prior to filing for bankruptcy.

3.  Before filing for bankruptcy Don’t liquidate your 401k. Taking money from your 401k that is exempt from creditors claims is bad move. Leave the money where it is!

4.  Before filing for bankruptcy Don’t charge up your credit cards. Some people intentionally go out and charge up their credit cards because they know they will be filing for bankruptcy and want to have some fun before they file for bankruptcy. As part of the bankruptcy filing, you will be filing information about your bills and debts and the trustee is going to look at that closely and make sure that you haven’t taken advantage of your creditors.

5. Before filing for bankruptcy Don’t spend your tax refund. If you think you are getting a tax refund, you may want to consult your bankruptcy attorney to determine how to protect that refund. Until you know, don’t spend it.

What Can You Do Before Filing For Bankruptcy ?

You can learn more about your rights to bankruptcy in the Tampa Bay area by contact Sunshine State bankruptcy and request a no obligation copy of The Essential Guide to Bankruptcy in Florida.

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