logo logo

Do’s and Dont’s of Bankruptcy

770-609-1247 | Cumming Georgia Bankruptcy Lawyers

When it comes to filing for Bankruptcy, it is important to use good judgment. Not using good judgment can result into consequences that one may not imagine. You are required to follow certain guidelines to ensure that you are protected financially. It is quite possible to mess up your bankruptcy case, which can result in your case being dismissed and debts not being discharged. It is advised to consult your local Bankruptcy attorney who can guide you in right direction. This article is written for educational purposes, and it will list out the common mistakes that can result if proper judgment is not used.

A Court may decide to dismiss your bankruptcy case for ample amount of reasons. However, you can take some precautionary measures so your case does not get dismissed. Below are some do’s and dont’s that you should follow when you file for bankruptcy:

Bankruptcy Filing Don’ts

  • You are advised not to use your credit card. If, within 90 days of filing for bankruptcy, you use your credit card or obtain credit, the case filing will be delayed and you will likely be required to pay back the money.
  • You are advised not to pay money to anyone in your family. By paying your family members, they too can become the victim of a bankruptcy lawsuit. If they are made part of the bankruptcy lawsuit, they will also be required to pay back the money.
  • You are advised not leave your assets off of your bankruptcy papers. Failure to list your assets will be constituted as if the asset never existed. If there is any asset or property that you want to secure, then you are advised to discuss this with the attorney prior to the case filing. Do not wait until your case is filed, it may be too late then.
  • You are advised not to file a bankruptcy if you are about to receive large fund or inheritance. You are advised to sit with your bankruptcy attorney and conduct a pre-bankruptcy planning.
  • It is important that you disclose to your attorney that you have small business, if you have one. Failure to list your business and its assets will result in loss of business assets.
  • You are advised not to transfer your property or any valuable assets to anyone. By transferring your property or other assets, you will make the other party subject to the bankruptcy case and to lawsuit.
  • Do not cash out any retirement plans, IRAs or 401(k) s. The funds of these accounts are usually protected from creditors. By taking the money out of these accounts, the account will not be subject to protection. It is possible to file for bankruptcy while keeping all your funds in your retirement accounts.

Bankruptcy Filing Do’s

  • It is important to save all financial documents including: Tax returns for past three years, including the W-2s, bank statements for 6 months duration, paystubs, and recent billing statements you have received from all the creditors as of now.
  • It is important to keep up with the payments on any loans for which you wish to keep the collateral. If you have a mortgage or car payment, and you wish to keep the house or the car, you must remain current on the payments. DO let me know if you are not current on your mortgage or car payments when I am preparing your case.
  • It is important to close all your bank accounts, and financial accounts if you owe any money on a credit card, loan, or other debt to any lending institution. Failure to do this will result in loss of money when the bankruptcy case is filed. Be sure that all the checks have cleared the account prior to closing.
  • Keep all the relevant documents about your bankruptcy. This includes the fee agreement, my letters to you, copies of all court documents and the discharge that is mailed to you at the conclusion of your case. It might be helpful to retain the file with relevant documents for at least 10 years, as bankruptcy will remain on your credit report for at least 10 years. Thus, it is highly likely that you may be needing these documents in the near future.
  • Be sure to maintain insurance coverage on your house and your cars.
  • Provide your attorney will a complete list of all the debts owed to friends and relatives by name, address, and amounts due.
  • Make sure your attorney is aware of any members in your family that you have paid any money in the past year, while disclosing the amount paid and the date on which you made the payment.
  • If you expect to receive any inheritance anytime within the next year, it is important to make your attorney aware of it.
  • If you expect to receive any alimony or owe any child support, make sure your attorney is aware of it.
  • It is important to disclose all the financial assets. Your attorney should be made aware of any relevant information for him to represent you adequately. Failure to notify your attorney about any assets may lead to the loss of those assets, or case denial. Non-disclosure may also result in fines or imprisonment in extreme cases.

What happens if the bankruptcy case is dismissed by the court?

While this is rare for people using experienced bankruptcy attorneys, failure to comply with bankruptcy requirements may result in a case dismissal. If for any reason the case is dismissed, then you may be able to re-file your case. On the contrary, if the case is dismissed due to fraudulent purposes, then the Court has the discretion to forbid you to file bankruptcy again in the future for certain period of time.

It is advised to consult your attorney prior to filing for bankruptcy. Any one step in the wrong direction can result in horrible consequences that may not be avoided. Our attorneys are experienced in bankruptcy related matters and can help you plan out your case prior to filing for bankruptcy. Thus, you can avoid making mistakes by getting help beforehand. Call Coleman Legal Group, LLC at 770-609-1247 today.

bottom