What Not to do Before Filing for Bankruptcy

Carrying excess your debt can cost you the money you will need to retire to afford a moderate lifestyle. Filing for bankruptcy is not an immoral decision. Rather, it is a legal choice that can help you do better than those who do not file for bankruptcy. If you are thinking about filing for bankruptcy here are some good tips of what not to do before you file for bankruptcy.

  1. Don’t Drain Retirement Funds. In most cases, when you file for bankruptcy you are able to retain retirement funds and accounts. Thus, it may be preferable to keep your retirement funds intact before draining these funds to pay off debt. It is a good idea to consult a bankruptcy attorney before making decisions in regards to retirement funds.
  2. Don’t Make any Unusual Transactions. Any transactions beyond your routine bills should be avoided. Avoid transfers of money or assets to relatives or friends. Avoid making any large or unusual payments to creditors. Large payments to a single creditor or paying off a whole debt can cause problems after you file for bankruptcy. This is not to say that you should not make your routine ongoing payments or pay bills.
  3. Don’t Wait to File if you are Facing a Foreclosure or Repossession. If you are facing a foreclosure or repossession it may be in your best interests to file sooner rather than later. If the bank is about to foreclose on your home or a lender is attempting to repossess your vehicle, you can put an immediate stop to the foreclosure with bankruptcy. Speak to an experienced bankruptcy attorney to determine if you will benefit from filing sooner than later.

This article is written by an attorney at Wyatt & Mirabella, PC. Always consult an attorney before making any legal decisions. To make an appointment today for a free consultation, please click here to contact us.