Upcoming Bankruptcy? Don't Do These Three Things


If you're planning on filing for an upcoming bankruptcy, you may wonder what your next steps should be to make sure that it goes smoothly. While the best thing you can do is work with a local bankruptcy attorney who offers chapter 7 bankruptcy filing services, you do not want to make mistakes before you officially hire them. Here are a few tips that things you should not do before the process starts.

Don't Take on New Debts

One thing you definitely want to avoid when you are aware that you will use bankruptcy is taking on new debts. The problem is that any activity can be seen as fraudulent because you'll be knowingly taking on the debt with the hope of having it discharged. If a creditor is able to prove that you took on a debt with the knowledge of an upcoming bankruptcy, you'll potentially have those new debts not included in your bankruptcy filing. This includes seeking an auto loan or even taking on more credit card debt.

Don't Pay off Selective Debts

Another problem that creditors will have with your behavior is if you selectively start paying some of your debts. The reason for this is that it can be seen as giving preferential treatment to some creditors since you are ensuring they get paid back their debt, while others may have their debts completely discharged.

Sometimes people selectively pay off debts if they owe money to a friend or family member, but it can also be due to not knowing it's wrong behavior. You may be trying your best to pay back as many debts as you can before the bankruptcy filing starts, but not realize that what you are doing is giving preferential treatment to creditors.

Don't Avoid Filing Your Taxes

Before bankruptcy can begin, you'll need to get your taxes up to date by filing for the most recently completed tax year. If you've been putting off your taxes until April 15th because you don't want to pay the tax bill, know that it will only delay your bankruptcy. Your bankruptcy attorney may even be able to help get your taxes wrapped up so that you can start the bankruptcy filing process.

By taking these steps before your bankruptcy filing begins, you'll be doing all that you can to ensure it goes smoothly. You'll be more likely to have your debts discharged and be back on the road to financial recovery.


21 July 2018

Talking About Bankruptcy Proceedings

Hello, my name is Neil Gamford. Welcome to my site about bankruptcy proceedings. After my divorce, I was left near penniless and without a place to stay. I was paying all of my income to alimony and my remaining debts. Although I had a solid payment plan in place, it was getting difficult to cover my financial obligations without a home. Luckily, I met with a bankruptcy attorney, who helped me find a way to discharge my debts and start over. I hope to share the information I learned throughout that process with you through this site. Please feel free to visit anytime.