Thirty-Two Don’ts in preparing to File Bankruptcy
- Don’t leave out Bank, Checking, Savings, Brokerage, Credit Union Accounts, PayPal Accounts or HSA accounts.
- Don’t use your credit cards prior to filing.
- Don’t take Credit Card Cash Advances.
- Don’t use convenience checks
- Don’t do balance transfers
- Don’t pay money to family or friends until after your bankruptcy is done.
- Don’t tell a creditor that you intend to pay.
- Don’t leave assets off of your paperwork.
- Don’t file if you are about to receive a tax refund or an inheritance (without consulting your attorney).
- Don’t fail to tell your attorney about your small business, sole proprietorship, partnership, LLC, LLP, LC, corporation, or money making hobby.
- Don’t purchase a home shortly before filing bankruptcy without consulting your attorney.
- Don’t give or gift property to anyone.
- Don’t pay more than $600.00 on any past due bill.
- Don’t transfer property to anyone.
- Don’t cash out retirement plans or 401k’s.
- Don’t take out a second mortgage.
- Don’t gamble.
- Don’t hide assets or debts.
- Don’t take out payday loans.
- Don’t put your money in your kids’ bank accounts.
- Don’t omit or save a credit card for after your bankruptcy.
- Don’t fail to list a debt to a family member or other insider.
- Don’t write bad checks.
- Don’t borrow money.
- Don’t forget to tell your attorney about liens you may have on your home or unpaid judgments, we want to help you make them go away.
- Don’t make major financial decisions without talking to your attorney.
- Don’t get married before filing if your spouse has a high income.
- Don’t misrepresent facts to your attorney.
- Don’t run up your credit cards before filing
- Don’t fail to appear at State court hearings, trial or proceedings; coordinate with your attorney.
- Don’t hide from your attorney. Keep him or her up-to-date with your address, phone number and email address.
Culled from NACBA listserve with embellishments from yours truly.
Licensed in WA and OH