Bankruptcy Planning: What NOT To Do

Suggestions from a Ft. Lauderdale

Filing for bankruptcy can require considerable preparation. However, you want to make sure you do it the right way. The court will look closely at your activities leading up to the date that you filed for anything that indicates that you might have tried to evade full disclosure. It is very important to provide an honest account of your financial records so you can get the best outcome possible. In addition, it can be financially unwise to make certain moves before a bankruptcy.

Ft. Lauderdale bankruptcy attorney Jeffrey Solomon compiled a list of the most common Don’ts when filing a Chapter 7 Bankruptcy. Follow these, and you should be okay.

Don’t:

1. Don’t leave out bank, checking, savings, brokerage or credit union accounts.
2. Don’t keep a bank account where you owe money such as credit card debt.
3. Don’t use your credit cards.
4. Don’t take credit card cash advances.
5. Don’t use convenience checks.
6. Don’t do balance transfers.
7. Don’t pay money to family or friends.
8. Don’t tell a creditor that you intend to pay.
9. Don’t omit assets from your paperwork.
10. Don’t file bankruptcy if you are about to receive a tax refund or inheritance. Discuss the timing with your attorney.
11. Don’t fail to tell your attorney about your small business, sole proprietorship, partnership, LLC or corporation.
12. Don’t purchase a home without consulting with an attorney.
13. Don’t give property to anyone.
14. Don’t pay more than $600 on any past due bill.
15. Don’t transfer property to anyone.
16. Don’t cash out retirement plans or 401k’s.
17. Don’t take out a second mortgage.
18. Don’t gamble.
19. Don’t hide assets or debts.
20. Don’t take out “payday loans.”
21. Don’t put money in your children’s bank accounts.
22. Don’t omit or “save” a credit card for after you file bankruptcy.
23. Don’t fail to list debt to family or other “insiders.”
24. Don’t’ write bad checks.
25. Don’t borrow money.
26. Don’t forget to tell your attorney about liens you may have on your home or unpaid judgments.
27. Don’t make major financial decisions without talking to your attorney.
28. Don’t get married before filing if your spouse has a high income.
29. Don’t misrepresent facts to your attorney.
30. Don’t run up credit cards.
31. Don’t fail to appear at state court hearings or trial proceedings.
32. Don’t hide from your attorney. Keep him provided with your most up-to-date address, phone number and email address.

Moving assets around or taking any actions with your finances can be unwise leading up to a bankruptcy. Contact a Ft. Lauderdale Bankruptcy lawyer at the Law Office of Jeffrey Solomon if you have questions.