What Not To Do When Filing For Bankruptcy

May 6th, 2020
Posted By
Michael Ryan Jones
woman holding glasses up to mouth and thinking in front of laptop
When it comes to filing for bankruptcy, you feel ready to do whatever it takes to get your chance at a financial refresh. While you may be concerned about assets you want to protect during your filing, you also don’t want to make a wrong move and ruin your chances of an approved petition. If you live in Columbus, Ohio, take a look at what not to do when filing for bankruptcy.

Don’t Lie About Your Assets - The First Step to Filing For Bankruptcy

If you plan on filing for Chapter 7 bankruptcy, you need to pass the means test. This includes disclosing all of your assets and income, which determines your ability to pay off creditors. If you purposely leave out assets, your case can be disqualified and you may even be banned from filing in the future. Remember--in this digital era, nothing is a secret, your creditors and banks have records of everything. So don’t lie.

Don’t Give Property Away to Family

Whether it is cash, property, vehicles, jewels, etc., giving these assets away to family and friends under the condition they will give them back to you eventually is dishonest and illegal. Not only is giving your good stuff away bad but handing over payments to family members before filing is also a bad move. For example, if you own your vehicle, it should be listed as an asset for your means test. However, if you are still making payments on it, then it needs to be listed as a liability.

Don’t Use Up Your Credit Limit and Then File

You may think you can pull a fast one over your credit card company, but the reality is, using up the credit limit right before filing for bankruptcy is a sure way to end up with more debts in the future. When your credit card company receives your bankruptcy notification, they will look to see when your latest use of the credit was. Typically, any charges made 90 days prior to a bankruptcy filing is not included in the bankruptcy, which means you’ll owe that to your creditors. In addition, if you knowingly use the card for a major purchase knowing that you are filing for bankruptcy, this will be seen as a red flag by the credit and they may challenge the request for bankruptcy. The bottom line is this: once you file--stop using your credit cards.

Don’t Handle Bankruptcy Alone - Filing For Bankruptcy with Legal Guidance

You may think bankruptcy is an easy process--which it can be. But not if you don’t consult with a bankruptcy attorney. Bankruptcy laws can be confusing and making one of these mistakes can be detrimental to your bankruptcy petition. That’s why you need legal guidance in any bankruptcy matter.

Avoid These Bankruptcy Mistakes with The Jones Law Firm in Columbus Ohio

If you live in Columbus or central Ohio and are experiencing financial distress, we encourage you to contact The Jones Law Firm for a free consultation about how we can help determine whether Chapter 7 or Chapter 13 bankruptcy is right for you. We know bankruptcy has many nuances that can seem overwhelming. That’s why we’re here, to guide you through the process. With offices in Reynoldsburg, Ohio, The Jones Law Firm works with clients in and around Columbus, Ohio. Don’t delay. Your financial future begins now.
Categories: General Bankruptcy