What to Avoid Prior to Filing Bankruptcy
The decision to file bankruptcy is, and should be, one of the most difficult decisions to make. For individuals experiencing significant financial problems, the filing of a Chapter 7 or Chapter 13 bankruptcy case should be a “business” decision. The “business” is you and your family. The question you must ask yourself is, “How am I going to take care of my family over the next several years?”.
Many individuals struggle with making the decision to file bankruptcy. They try everything possible to avoid filing. However, some of the decisions made may adversely affect a subsequent bankruptcy filing. This may result in problems in the bankruptcy case or losing assets. If you are drowning in debt and there is a possibility you may need to file bankruptcy, the following is a list of things you should not do:
- Do not continue to use credit cards or start new debt
- Do not repay debts to family members or close friends
- Do not transfer any property to family or friends for less than a fair and reasonable price
- Do not withdraw money or take a loan from your retirement plan
- Do not take out an equity loan on your house
Now it’s time to get help. Remember, bankruptcy is not a moral decision, it’s a “business” decision. Lewis & Jurnovoy, PA is here to help. Before making any big financial decisions, set up a free consultation appointment so we can help you and your family establish a game plan and find solutions to your financial problems. Everyone deserves a second chance and a fresh start.