Prebankruptcy Planning
Planning ahead if you are considering bankruptcy is a wise idea. It's important to understand what actions to avoid in the months or even years before you file for bankruptcy -- running afoul of the bankruptcy laws can jeopardize your discharge and even land you in jail.
In addition, careful consideration of your property and available exemptions can help you keep more property. And timing your filing correctly could also prevent the trustee from taking back money you recently paid to relatives or business associates.
Learn how to avoid losing money to lenders and ensure you have bank account access and uninterrupted electric, gas, and water service after filing for bankruptcy.
One way to ensure a smooth bankruptcy is to understand what to avoid before filing and steer clear of actions that could lead to complications. Here are some key steps to consider before filing for Chapter 7 or Chapter 13 bankruptcy.
Hiding assets and cash when you file for bankruptcy is never a good idea. Learn about actions to avoid before filing and the consequences of defrauding bankruptcy creditors.
An avoidable preference is a payment you make to a creditor prior to bankruptcy that the trustee can get back. Learn more.
Selling or transferring nonexempt property before you file for bankruptcy can be a risky proposition. Learn when transferring property before bankruptcy can be inappropriate.
If you file for bankruptcy, you might not be able to get rid of recent cash advances or credit card charges for luxury items.
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