Don’ts and more Don’ts when considering a bankruptcy. 2017 Edition.

Thirty-Two Don’ts in preparing to File Bankruptcy

  1. Don’t leave out Bank, Checking, Savings, Brokerage, Credit Union Accounts, PayPal Accounts or HSA accounts.
  2. Don’t use your credit cards prior to filing.
  3. Don’t take Credit Card Cash Advances.
  4. Don’t use convenience checks
  5. Don’t do balance transfers
  6. Don’t pay money to family or friends until after your bankruptcy is done.
  7. Don’t tell a creditor that you intend to pay.
  8. Don’t leave assets off of your paperwork.
  9. Don’t file if you are about to receive a tax refund or an inheritance (without consulting your attorney).
  10. Don’t fail to tell your attorney about your small business, sole proprietorship, partnership, LLC, LLP, LC, corporation, or money making hobby.
  11. Don’t purchase a home shortly before filing bankruptcy without consulting your attorney.
  12. Don’t give or gift property to anyone.
  13. Don’t pay more than $600.00 on any past due bill.
  14. Don’t transfer property to anyone.
  15. Don’t cash out retirement plans or 401k’s.
  16. Don’t take out a second mortgage.
  17. Don’t gamble.
  18. Don’t hide assets or debts.
  19. Don’t take out payday loans.
  20. Don’t put your money in your kids’ bank accounts.
  21. Don’t omit or save a credit card for after your bankruptcy.
  22. Don’t fail to list a debt to a family member or other insider.
  23. Don’t write bad checks.
  24. Don’t borrow money.
  25. 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.
  26. Don’t make major financial decisions without talking to your attorney.
  27. Don’t get married before filing if your spouse has a high income.
  28. Don’t misrepresent facts to your attorney.
  29. Don’t run up your credit cards before filing
  30. Don’t fail to appear at State court hearings, trial or proceedings; coordinate with your attorney.
  31. 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.

Steve Palmer
Licensed in WA and OH

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