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What to Avoid Before Filing Bankruptcy

What to Avoid Before Filing Bankruptcy

Posted By Law Offices of Marshall D. Schultz || 26-May-2014

Making the decision to file for bankruptcy will likely prove to be a significant turning point in your life. The actions you take immediately after making such a decision will have a direct impact on the success of your case and its overall outcome. Here at Marshall D. Schultz, we take pride in providing our clients with a safe, judgment-free atmosphere where they can get the legal assistance necessary to address their debt situation and pursue a viable resolution to their existing financial problems. Our founding attorney has a Good Rating on Avvo and both of our attorneys are members of the U.S. District Court. Over the past few decades we have helped thousands of individuals navigate the bankruptcy process so they could be given a clean financial slate and we look forward to doing the same for you.

Many people are completely unaware of the fact that if they take certain actions, it could wind up putting their bankruptcy in jeopardy. If you are planning on filing for bankruptcy, hire a bankruptcy attorney from our Detroit-based law firm so that we can advise you on the actions you will want to avoid before filing for bankruptcy. At the very least, you should avoid:

  • Leaving any creditor information or other pertinent details off your bankruptcy petition. Incomplete or falsified documentation, any attempt to hide assets, or be deceptive in any way could result in your debts becoming ineligible for discharge or your case being dismissed. Be honest with your attorney, thorough with your paperwork and trust that we will work hard to help you resolve any financial problem you may have encountered.
  • Racking up additional debt in the hopes it will be discharged. Debt which is incurred within a 60-90 day window prior to filing stands a much greater chance of being denied for discharge.
  • Taking out cash advances on existing credit cards or lines of credit. This is usually considered as fraud as most creditors will argue that you had no intention of repaying the debt as you were already making plans to file for bankruptcy.
  • Neglecting or failing to file your income tax returns. In most instances a bankruptcy case will not move forward until the individual's tax returns, for at least the past 2 years, have been filed.
  • Moving your assets or transferring money in an attempt to prevent them from being liquated or sold to pay off outstanding debt.
  • Repaying personal loans to friends and relatives. This type of action is often viewed as preferential treatment and it is very likely the trustee will take action to get the money back from the individual you paid, so that it can be disbursed evenly between your creditors.

We also advise clients not initiate the bankruptcy process if they are expecting to receive a hefty inheritance, a large tax refund, a considerable settlement payment from a lawsuit or any other substantial amount of money. In this type of situation there are alternatives to bankruptcy which may be more appropriate to your individual circumstances. To find out more about what actions should be avoided before filing bankruptcy or to get the bankruptcy process started, call our law offices and schedule to meet with a Detroit bankruptcy attorney at once.

Categories: Bankruptcy

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