Don’t Engage in These Actions Before Bankruptcy

If you are considering filing for bankruptcy, it is important that you do so properly. That means that you do not want to engage in any actions which could be considered suspicious by the bankruptcy court either during or prior to the filing of your petition. What are suspicious actions? They involve going on spending sprees, maxing out your credit cards, making large purchases or cash advances in the months prior, or transferring large sums of money to family members, even if those sums are a form of payment for money you borrowed from them.

You should not make any large purchases or cash advances or use your credit cards excessively just prior to a bankruptcy filing because the court may look at this as a type of fraud. Such actions can look as if you are trying to gain the maximum benefit from your credit lines without any repercussions due to your upcoming bankruptcy petition. Such actions show a lack of responsibility about your finances. You should also avoid applying for any new loans or lines of credit within 90 days of a filing, for the same reasons. Don’t transfer any of your assets out of your name or pay back family or friends with available funds prior to a filing. These actions will also raise a red flag with the court, who may consider that you are trying to hide assets or funds in your bankruptcy case. These types of actions can disqualify your case and could even result in your facing civil charges of fraud.

Chicago Bankruptcy Firm

Getting the legal guidance and representation of an experienced bankruptcy attorney is essential in any type of bankruptcy filing. With proper guidance, you will learn the do’s and don’ts involved in the bankruptcy process, including proper behavior prior to any case filing. Avoiding questionable behaviors is important if you wish to accomplish a smooth legal process in as fast a time period as possible.

Glanzer & Associates, P.C. serves clients in and around the greater Chicago area with dedicated bankruptcy representation. Attorney Glanzer has a solid track record of helping innumerable clients with Chapter 7 and Chapter 13 filings as well as other forms of debt relief. He can explain the bankruptcy process and educate you on all of the benefits as well as the disadvantages. Contact his firm to discuss your financial situation. Get a free case analysis to find out what debt relief options are best for you.