If you are considering filing for bankruptcy, the list of actions to avoid is just as important as the list of things to do before filing. If you do not avoid these simple decisions, it may prevent you from getting debt relief.
- Do not transfer assets out of your name. Doing so raises huge red flags in bankruptcy court, particularly if the transferal of assets occurs right before bankruptcy filing. In some cases, hasty asset transfers may be illegal.
- Do not use a credit card for large cash advances. Many filers choose to max out their credit cards before filing for bankruptcy because they fear losing credit later or they assume the debt will be discharged. However, if someone has no intention of paying money back, it is considered fraud.
- Do not pay off a preferred creditor. Oftentimes, bankruptcy filers try to pay off debts with friends and family members before filing. However, bankruptcy court may make them give the money back so other creditors can get their share.
- Do not make large purchases. It may seem like a good time to make large, expensive purchases since your debts are about to be discharged, however; the bankruptcy court may consider these purchases fraudulent.
Click here to read more on this story.
If you have any questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
