Top Tips on What Not to do Before Filing a Bankruptcy Case
This a a list of items you shouldn't be being before filing a bankruptcy case.
Not Being Upfront With Your AttorneyDisclosure is key, not only in the bankruptcy world, but also in any legal proceeding. Providing your attorney with incomplete, dishonest or inaccurate information will lead to criminal penalties and the non-discharge of your bankruptcy case.
Transferring Property Out of Your NameDo not transfer, quitclaim, sell or hide assets before the filing of your bankruptcy case. Unless there is a good reason why an asset was transferred out of your name prior to the filing of a case, the Trustee or a creditor can argue there was a fraudulent transfer and you may be denied a discharge and subject to criminal penalties.
Incurring New DebtUnless you incurred debt for necessities, any luxury goods, large dollar amount items or cash advances completed 70-90 days before the filing of a bankruptcy may not be dischargeable.
Repaying Friends, Family Members or Business AssociatesDo not repay any friends, family members or business associates any loans borrowed from them within the year before the filing of your bankruptcy case. A repayment to an insider is considered a preferential transfer and the Trustee will be seeking the amount of the repayment from either the party who was repaid or from the Debtor.