Are you having financial problems and thinking about filing for bankruptcy? To help you keep your options open, you need to know there are some things you should do and some things you shouldn’t do. In many cases, some actions may either limit your options or put your assets at risk.
What are some dos and don’ts of bankruptcy?
When you are thinking about filing for bankruptcy, the first thing you should do is talk to an attorney to find out your options. Many bankruptcy attorneys offer free consultations, and you should take advantage of that. That doesn’t mean that you have to file, but it does let you know your options and how bankruptcy would apply to your situation.
Below is a list of dos and don’ts you need to know before filing bankruptcy, so you don’t put your case at risk.
Do’s Of Bankruptcy
1. When filing for bankruptcy, it’s important that you are honest about your financial situation. Make a list of all of your debts, assets, judgments, garnishments, or lawsuits. You can use this list to fill out the bankruptcy forms. The more accurate this information is, the faster and smoother your bankruptcy case will be processed.
2. Do look into other options before you file, such as debt restructuring or debt consolidation. The court won’t approve your bankruptcy petition if they think you could have gotten out of debt on your own without declaring bankruptcy.
3. Do consider all the pros and cons that come with filing for bankruptcy, including any potential long-term effects on your credit score or ability to borrow money in the future.
4. Get a bankruptcy attorney that has experience. If you’re not sure where to start, the American Bar Association offers a directory of attorneys who specialize in bankruptcy.
Don’ts of Bankruptcy
1. Do not stop paying your bills or make payments late when you are considering bankruptcy. If you do, the court may decide that you are not eligible for bankruptcy protection because they feel that you are trying to avoid paying off your debts by filing for bankruptcy. This will hurt your case and could cause delays in the process while they investigate whether or not you were trying to avoid paying off your debts.
2. Do not hide assets. Make sure that all of your assets are declared before filing for bankruptcy so that they can be used to pay off any creditors who might be owed money by you before you file for bankruptcy protection. This will help speed up the process and make sure that all creditors get paid back as soon as possible once everything has been finalized with the court’s approval.
3. Don’t transfer property or money before filing for bankruptcy. If you file for bankruptcy, all of your assets will be frozen until the case is resolved. You cannot transfer property or money without the permission of the trustee, and even with that permission, transfers can be voided by the trustee later on if they are considered fraudulent.
4. Don’t pay off debts owed before filing for bankruptcy unless they were secured by collateral such as a house or car (in which case they must be paid off). Payments made prior to filing will still be considered part of your debt and may end up being collected after bankruptcy is over if they were made within 60 days of filing.
Help with Personal Bankruptcy
Bankruptcy is a legal process that allows you to get out from under your debt. It can help reduce your monthly payments, stop creditor harassment, and give you time to save money.
We know that filing for bankruptcy is not an easy decision—and it’s certainly not one that should be taken lightly. But if you’re in financial distress and are considering bankruptcy, we can help.
Our team at Hines Law in Massachusetts has spent years working with consumers just like you who are struggling financially. We understand how hard it can be to find yourself on the verge of losing everything: your home, your car… even your job! But when you work with us, we’ll walk alongside you every step of the way as we guide you through this difficult time in your life.
Our bankruptcy firm provides services throughout the greater Boston area, call for a Free case evaluation today.