4 Things To Avoid Before Filing Your Bankruptcy Case

Bankruptcy is a debt-relief solution that many people use when they face serious financial hardships. If you decide to use it to get out of debt, you will need to avoid doing some things before filing. A bankruptcy attorney can help you know what to avoid and when to file, and here are four things your attorney might recommend avoiding.

1. Filing Too Quickly

Some people rush into bankruptcy and end up regretting it afterward. If you need to file bankruptcy and handle it properly, you can avoid feeling this way. By avoiding filing too quickly, you can think about your decision and time it right. You can also have enough time to gather every document you need. For example, if you rush into it, you might forget to include a few debts that you owe. If you forget to add these, you might not be able to add them later. As a result, you might not receive any relief on these bills.

2. Using Your Credit Cards

The second thing to avoid before filing is using your credit cards in the wrong ways. You can continue using your credit cards up until the day you file, but you need to use caution with how you use them. The main thing to avoid is using them frivolously. In other words, you cannot go on a shopping spree with your credit cards before filing. If you do, the court might detect this and dismiss your case.

3. Not Filing Your Taxes

The next thing to avoid is not filing your taxes. You cannot file a bankruptcy case without having your filed tax returns. You might need just the last year's tax return you have, or you may have several years' worth. Your attorney can give you more information, but you will definitely need them. If you do not file them, you will need to before you can file your bankruptcy case.

4. Getting Rid of Things You Own

Finally, you should avoid getting rid of things, especially big, expensive things. You cannot get rid of things before filing to avoid losing them in your case. If you do this, the bankruptcy trustee will find out. As a result, it could jeopardize your case, leaving you without any relief.

Avoiding these things is vital before filing a bankruptcy case. If you need any assistance with your decision or filing your case, seek help from a bankruptcy attorney in your city.

About Me

An End to Debt

When you are over your head with no way out, declaring bankruptcy can be the best choice for your own financial future. Depending on the type of bankruptcy that you declare, this can either mean that your debts are erased, or that they are consolidated and reduced so that you are better able to pay them. Navigating bankruptcy is not easy, and most people cannot do so without the aid of a good bankruptcy attorney. But even before you hire that attorney, you could probably use some basic advice and guidance. That's where this website comes in. We are not lawyers, but we have a lot of helpful advice to offer when it comes to bankruptcy and bankruptcy law.

Search

Categories

Latest Posts

24 February 2021
Before you file for Chapter 7 bankruptcy, you should evaluate how it works and the effects it will have on your finances. You might also want to learn

4 February 2021
Bankruptcy is a debt-relief solution that many people use when they face serious financial hardships. If you decide to use it to get out of debt, you

20 January 2021
If you do not qualify for Chapter 7, your attorney might suggest using Chapter 13 bankruptcy if you need help with your debt. People also choose Chapt