What Not to Do Before Filing Bankruptcy

Do not pay off relative or friends that are your creditors. Bankruptcy courts and trustees do not look favorably upon this practice. Those payments may be forced to be returned to your trustee.

Do not transfer property out of your name. You will be filing schedules in your bankruptcy pleading. It will ask if you have made any transfers within a particular time. Those assets transferred may be forced to be returned to your trustee.

Do not incur large debts or run up credit cards. If you incur debts close to filing, those creditors may have the right to exempt these debts from discharge.

Do not hide or fail to disclose assets. Failure to report all assets is a criminal offense. You can be criminally prosecuted .

Do not let other persons or family members hold or use assets. Even if you plan to surrender these assets in the bankruptcy proceeding. If these assets are damaged or taken by someone, you may be financially held responsible in the bankruptcy proceeding.

If you have any questions about bankruptcy, please contact an experienced bankruptcy attorney.

-Kent S. DeJean

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