Despite being financially responsible, a certain life situation could cause a difficult financial situation. A visit to the emergency room resulting in expensive medical bills, job loss, divorce, all of these could mean that the best route is to file for bankruptcy.
If you’ve weighed your options and determined that bankruptcy is the best way to go, the last thing you want to do is make your bankruptcy case filing any harder than it needs to be. The following tips are things you should not do while you’re going through the process.
Money or property transfer. Many people mistakenly believe that if they transfer their assets such as their vehicle, cash, or even their home to another person, these assets will be protected from bankruptcy. Not only is this not true, it could be interpreted as fraud even if that was never the intention. Remember that filing for bankruptcy does not necessarily mean you’re going to lose these assets.
Extra money deposits. Any money you do deposit into your bank account should come from an income source such as your job or work performed outside your job. Do not deposit a check for a family member or friend or money given to you to try and help you out. If you’re a business owner, make sure to keep your personal and business transactions entirely separate to avoid the risk of unintentional fraud.
Choosing to pay off a particular creditor. You may believe that paying off a certain debt will help your bankruptcy, yet this can be damaging. Choosing to pay your department store credit card over another one can be interpreted as “preferential transfer”. In other words, it may be viewed as though you think one creditor is more important than the other.
This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation including a Miami insurance attorney. We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.