When it comes to bankruptcy, a Springfield, Ohio Bankruptcy Attorney is the one to talk to about the do’s and don’ts of bankruptcy. You already know what to do; learn what not to do. Performing any of the following will cause delays, discharge refusal or a dismissed case.
- Spending: Spending money on big-ticket items you can’t afford on your credit card isn’t going to discharge automatically. In fact, it may ruin your chances of getting discharge for that purchase. Spending credit cards to get cash advances for whatever reason is fine – as long as you pay the money back. If you do not intend to do that, it is fraud. Never charge a card three months or less prior to bankruptcy for anything.
- Transfer Assets: Its clear this is done to hide or eliminate valuables from being lost in bankruptcy, and this is a major red flag to courts. It can be revoked by the courts for you to come out of it unscathed.
- Hide: There’s only one reason someone would hide assets: so they won’t have to lose it in bankruptcy. So if you don’t mention it, they’ll never know about it. Except they do. Hiding assets from bankruptcy filing will blow the whole case apart. Not only will the case be dismissed you will have ruined credit and must file again from scratch.
- Choosing favorites: Paying off certain lenders or close friends and stiffing the rest isn’t the right thing to do. You chose to borrow money from these many lenders or people; you must pay back everything. The lenders or close friends that were paid may have to give up some of their money for the outstanding debts remaining.
- Foreclosure, repossession or garnishment: bankruptcy cannot clear you of actions if you filed it before collection agencies come calling. Waiting too long will cost you your car, home or other valuables.
- Mess with retirement accounts: Retirement accounts are protected by bankruptcy. Moving them into a savings or checking account increases the chances of creditors taking your money.
Many people won’t do any of the following, but it’s important to be informed about it. You many have done this by accident, and if that happens we can help fix it before it gets worse. Contact us for more information.