Bankruptcy Do's & Dont's
Before You File Chapter 7 or Chapter 13 Bankruptcy
DO
- Be honest and forthcoming on your bankruptcy petition.
- Continue making payments on secured assets which you intend to keep.
DON’T:
- Borrow or withdraw from your 401K, IRA, or ERISA qualified savings and retirement plans to pay bills. If you do, you may be liable for penalties and taxes that are not protected by the bankruptcy filing.
- Borrow money on your home to pay unsecured bills, such as credit card, utility, or medical bills.
- Pay $600 or more back to relatives or business associates from whom you have borrowed money.
- Put property you own into someone else's name to avoid it being taken by creditors or the trustee. This is considered fraud.
- Run up a lot of bills immediately before you file. If you max out your credit cards or take out a loan before you file, the court could find your petition to be fraudulent and dismiss it, or except those debts from discharge.
After You Have Filed Chapter 7 Or Chapter 13 Bankruptcy
DO:
- Continue making payments on secured assets which you intend to keep.
- Call your bankruptcy attorney’s office when you get your Notice of Meeting of Creditors.
DON’T:
- Sell or transfer assets without contacting your bankruptcy attorney first to discuss the matter.
- Be concerned if a few creditors still attempt to contact you or send you bills or collection letters after filing.
- Talk to your creditors directly after you have filed for bankruptcy. Tell them to talk directly to your attorney. If you receive mail from them, forward it to your attorney immediately.