Things to Avoid before Filing Bankruptcy

Some actions that consumers take prior to filing for bankruptcy can have profound effects on the bankruptcy case once it is filed. Here is a common list of things that consumers should avoid doing once they decide to file for bankruptcy.

  • Don’t sell, give away or transfer ownership of any personal property, real estate, or other property prior to filing your bankruptcy case.
  • Don’t use credit cards or incur more debt.
  • Don’t leave assets off your bankruptcy forms, including lawsuits, workers comp claims, or other possible cases you may have.
  • Don’t take money out of, or borrow against, retirement plans, IRAs, or 401Ks
  • You should talk to your lawyer if you are expecting a large tax refund.
  • Don’t put your money into someone else’s bank account or put your name on someone else’s account.
  • Don’t get married or move in with someone, especially if that person has a high income.