Don't do these things
while filing for bankruptcy.
Don’t use your credit cards.Don’t take Credit Card Cash Advances or use convenience checks or do balance transfers.
If you use your credit cards in a substantial way within 90 days of filing bankruptcy you may have to pay that money back.
Don’t pay money to Family.
These pre-bankruptcy transfers can be recovered by the trustee.
Don’t leave assets off your petition.
Often clients fail to include exempt assets. If you do not list an asset and claim it as exempt it, you may lose it. If you have non-exempt assets you should discuss with your attorney how best to handle those before filing.
Don’t file bankruptcy if you are about to receive a large tax return or inheritance.
Instead, discuss how to handle these matters with your attorney.
Don’t fail to tell your attorney about your small business.
If you do not list and exempt your business assets, they may be lost.
Don’t purchase a home shortly before filing bankruptcy without consulting your attorney.
It may be better to do some legal bankruptcy planning.
Don’t give property to anyone.
It may be taken back by the trustee and sold.
Don’t pay more than $600 on any past due bill.
Don’t transfer property to anyone else.
The trustee will probably take it back and sell it.
Don’t cash out retirement plans or 401k’s.
You may accidentally convert exempt property into non-exempt property.
Don’t take out a second mortgage .
Using a 2nd mortgage to pay off credit card debt converts non-secured debt to secured debt.
Don’t gamble.
Don’t hide assets or debts; Don’t take out “payday loans”.
You may have to repay them;
Don’t put money in your kids bank accounts.Don’t save a credit card with a balance for after your bankruptcy.
The bank will probably close the account anyway, just after you make a payment.
Don’t fail to list debt to family or other “insiders.”
Don't write bad checks.
You could be prosecuted in criminal court (non-dischargeable debt).
Don’t borrow money.
Don’t forget to tell your attorney about liens you may have on your home so they can be avoided.
Don’t make major financial decisions without consulting an attorney.
Don't get married before filing bankruptcy if your new spouse has a high income; you could lose eligibility for chapter 7 bankruptcy.
Courts now consider spousal income in your bankruptcy. If you are single with a lower income, it is normally better to file bankruptcy before getting married to someone with a higher income.
Finally, Don’t mis-represent any facts to your attorney or the Court.
Bankruptcy is a great opportunity to get your financial life back on track. Courts want to help meritorious debtors. There is little patience for people who are nothonest.
If you have a question about one of these issues, contact us and we can tell you if it is likely to be an issue for you.
Honesty
Whether due to job loss, illness, divorce or wages that simply do not keep up with increased cost of living, many individuals and families in Iowa find themselves in financial distress.
Constant phone calls, lawsuits, judgments, liens, wage and bank account garnishment, calls at work that can threaten your job security, foreclosure and eviction are all problems Iowa individuals and families find themselves in when overwhelmed with unmanageable debt.
Our Courts and Judges, the United States Trustee’s Office, the Panel Trustees, the Clerk of Court and your Attorney are all interested in assisting honest debtors in getting relief from burdensome debt, getting back on track financially, and planning a brighter financial future.
As a debtor taking advantage of this opportunity, you have an obligation to be completely truthful and cooperative with your attorney and in all other matters related to your case. You must fully and accurately disclose all of your assets, income and all claims you have against others and comply with all document or other requests of the Trustees. The success of my firm and my ability to continue to represent honest, well intended clients depends of my accepting only clients who will take a completely honest approach.
- Jeff Mathias
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