Knowing what you should and should not do when you file for bankruptcy can be difficult. For this reason, you should always consult a reputable lawyer, like me, to ensure you are going about the process the right way. Not only will I ensure you are following the correct process, but I will also make sure you do not partake in certain actions that could get you into further legal trouble, such as transferring money or property. Here at Ron Lundquist, Attorney at Law, I will go through what you should avoid when filing for bankruptcy.
1. Transfer Property or Money
If you are in the process of filing for bankruptcy and you own property, it is important to ensure the court knows about all your assets. While transferring money or property may seem smart, it can make the courts think you’re trying to conceal certain assets so you can get them back once you have filed. There are many exemptions in bankruptcy law that are designed to protect your property, meaning the chance you lose them is small; therefore, you should not attempt to transfer them.
2. Pay Certain Creditors, While Ignoring Others
It’s important to maintain a proper payment schedule even while you are filing for bankruptcy. Though filing for bankruptcy is a way to show you have more debt than you can pay, it does not mean you can only pay the debts you deem most important. This can ruin your court case and result in potential lawsuits. Bankruptcy trustees can sue creditors when they think preferential payments have been made, which can result in additional hardships for you.
3. Source Where Your Income Stems From
Being able to explain and trace where all of your income comes from is very important when filing for bankruptcy. As long as you can provide an explanation and trace each form of income, the court has no reason to question your income. So, you should always keep business and personal accounts separate so they do not cross, which can create uncertainty in your case.
Contact Ron Lundquist, Attorney at Law, Today
If you are in the Twin Cities area and are considering filing for Chapter 7 or Chapter 13 bankruptcy, contact my office today. I specialize in bankruptcy services and can help you navigate the uncertain world of bankruptcy. I get to know you and every other client personally to ensure get the best possible treatment and services. To learn more or schedule a consultation, give me a call at 651-454-0007 or message us on our contact page.