Filing for bankruptcy can be complicated, as you’ll need to carefully navigate this process, as there are a considerable number of laws you’ll need to keep in mind. Though you may assume that this process will begin when you formally declare bankruptcy, this is not the case. In reality, the court overseeing your case will examine your finances before you’ve filed. As such, if you’re interested in filing, you’ll want to keep reading, as the following blog explores what you must avoid before filing. In addition, you’ll learn the importance of working with Franklin County bankruptcy lawyers to help guide you through these difficult matters.
Is There Anything I Should Avoid Before Filing for Bankruptcy?
When you are interested in filing for bankruptcy, you may be thinking about what you can do to prepare. However, you should also consider what you should avoid before filing.
One of the most common mistakes that you may make before going through this process is making large purchases before filing. Unfortunately, many interested in filing for bankruptcy assume they can make luxury purchases and have them dismissed along with the rest of their debts. However, this is not the case, as all purchases in the 90 days before your filing will be carefully scrutinized. As such, if you make any purchases outside of necessities, like food, clothing, or utilities, and instead make purchases like designer goods or expensive vacations, this can be a sign of bankruptcy fraud. You should also note that if the creditor believes you are trying to defraud them, they do not have to prove that you actually intended to commit the crime. Instead, this is considered “presumptive fraud,” which means the debt may not be discharged, and your case can be dismissed by the court.
You should also note that any attempt to conceal or hide assets can also constitute fraud. The prospect of losing assets can be upsetting, and as a result, you may decide to transfer property to a trusted friend or family member to keep it safe. However, this is illegal and constitutes fraud. You should note that if you need to sell property to pay rent or purchase groceries, you should keep a paper trail to prove all transactions and ensure you are not committing fraud.
If I’ve Made an Error, What Should I Do?
In the event you have made any of the previously mentioned errors before filing for bankruptcy, the most important thing you can do is get in contact with an experienced attorney as soon as possible. They can examine the circumstances of your case to help you determine the best possible course of action regarding the error and how to remedy it.
As you can see, making an error when filing for bankruptcy can have drastic impacts on your life. That is why connecting with an experienced attorney before filing is critical. At Cousino & Weinzimmer LLC, we can assist you through these difficult times and help ensure you can reap the full benefits of this process. Contact us today to learn more.
