Before Filing for Bankruptcy Do…
- DO remain honest. It is imperative that you remain truthful not only to yourself but also to your bankruptcy attorney in order for them to be able to adequately help you. The good news about the attorney-client privilege is that he or she will not share information that you do not want to be discussed and he or she will let you know when you have a legal obligation to disclose of certain information or face penalty of perjury.
- DO continue to make vehicle payments. Your vehicle can be repossessed without notice if you default on a payment.
- DO contact an Ohio bankruptcy lawyer. It is important to consult with an attorney as soon as you believe that you may be in financial trouble. When people wait until the last minute to seek help, options often become quite limited.
- DO establish a budget for yourself. It will be to your benefit to set a reasonable budget and stick to it, prioritizing what matters the most.
- DO disclose any large purchases or payments made within last three months. Those who fail to disclose of large purchases or payments made within three months of filing for bankruptcy may be denied discharge of debts.
Before Filing for Bankruptcy Do Not…
- DO NOT try to sell any of your property prior to filing. This will not help to reduce what you owe. In fact, it may increase it as a result.
- DO NOT try to pay anyone off. Generally speaking, your creditors will not leave your account open so paying them off is a waste of money. If the amount of money that you have paid to others in the 90 days prior to filing exceeds a certain amount, the Trustee can actually take the money back from the person.
- DO NOT transfer your property out of your name and into someone else’s. Transferring property to family or friends often gives off the impression that you are attempting to hide your assets. If the court believes that you are intentionally committing fraud, it may dismiss your case all together.
- DO NOT fail to include all creditors from your petition for bankruptcy. Leaving off any creditors that you owe can be seen as fraudulent and cause you to receive penalties.
- DO NOT spend excessively. Spending excessively in the three months leading up to filing for bankruptcy does not look good. In fact, it often makes you appear to be committing fraud of some kind. You may still be responsible for making the payments on these purchases if made in the 90 days prior to filing.
- DO NOT wait until the last minute. The longer you wait to acknowledge your financial situation, the worse it will get. Ignoring letters, phone calls, and other documents is not in your best interest and can lead to negative outcomes.
What Can You Do?
If you or a loved one is considering filing for bankruptcy, it is important that you understand all of the potential implications that it can have on your life. It is so important that you understand if bankruptcy is your best option in your current situation. To do so, it may be in your best interest to consult with a knowledgeable and experienced bankruptcy attorney. At Miami Valley Bankruptcy, we understand bankruptcy law and will help you to best navigate your situation. To learn more or to schedule a free consultation, visit us online or call us at 937-502-1040 today!