Don’t do this before you file Bankruptcy!
Learn more about how Chapter 7 Bankruptcy can help you.
If you’re thinking about filing Bankruptcy in the near future, there are some things that you should NOT do before you file. Most people don’t realize that these things can possibly cause problems. It’s not a complete list, but here are a few examples of things I often see.
Don’t give money to a family member. If you give a family member more than $600 within 1 year before filing Bankruptcy, this may be an issue in your case. This is true even if you owed money to the family member and you were simply paying that person back. If you’ve already done this and you can’t wait a whole year to file Bankruptcy, please call me and we can discuss other options.
Don’t transfer anything out of your name. This could be seen as trying to hide your property so you don’t lose it. However, there are other ways to protect your property which are fully allowed by the Bankruptcy Code. Selling something for fair market value is usually not an issue, but you should call me before making any transfers to discuss your specific situation.
Don’t use credit cards or take out any loans. You don’t want to incur a lot of new debt right before you file Bankruptcy, because those companies may file objections in your case. It’s best if it has been at least 90 days since you’ve used any credit cards or taken out any new loans. However, that is only the general rule and you may not need to wait that long or you could possibly need to wait even longer. Once again, you should first discuss your exact debt situation with Jason Bauman, an experienced Kentucky Bankruptcy Attorney.
Don’t spend your tax refund. If you receive a large tax refund, it’s usually better to hold onto it rather than to spend it right before you file Bankruptcy. I often see people who spend their tax refund on things that may cause problems in their case. This is especially true if some of the money is given to a family member. Call me instead and I’ll help you decide how and when that money should be spent.
These are only a few general examples of things I often see that may cause problems in a Bankruptcy case. However, this list is not complete and everyone’s situation is different. That’s why it’s important to have an experienced Louisville Bankruptcy Attorney on your side. We know the Bankruptcy Laws and we can advise you according to your specific situation. We have helped thousands of people in Kentucky and we are excited to help you too!
Bauman Bankruptcy Law has 2 convenient office locations in Louisville. Call us today or click on the link above to schedule a phone call with Jason.