What Not to do Before Filing For Bankruptcy

If you made the decision to file for bankruptcy, it’s important you do so accurately and with complete protection for the assets that you need for a good quality of life. Bankruptcy can help you establish a fresh start with your finances but taking on some actions prior to bankruptcy can have a serious effect on financial transactions and the status of your bankruptcy in the future. Here are some top mistakes that you can avoid as you are filing for bankruptcy:

Don’t Keep a Bank Account With The Same Bank Your Personal Loans With

Your bank will have the right to take money from your account to cover your loan if you’re behind on payments. No notice is required for this removal. Removing your bank account from the bank that you hold a credit card or personal loan with can be advantageous to keeping control of your money. Banks like Wells Fargo are also known for freezing the accounts of clients that have recently filed for bankruptcy and this could mean your funds could be held for up to 60 days.

Forgetting About Extra Expenses

If you have money that’s owed to you or items like a tax refund that is coming into your account, make sure that you are reporting expected income as well as income that is going to come to you automatically.

Transferring The Titles of Your Assets Before Filing

If you transferred the title of your assets under six months before you file for bankruptcy, you can be charged with bankruptcy fraud. If you want to transfer ownership of your assets for filing for bankruptcy, it’s best to do it at least a year before your filing date.

Failure to Disclose All Assets

If you bought a car for somebody or you have a partial stake in a timeshare, these can count as assets. Under Florida bankruptcy law you will need to disclose every asset and this can include things like collectibles, jewelry, furniture, and more. Leaving these out of your bankruptcy proceedings could be detrimental to your approval and it could lead to you being charged with bankruptcy fraud.

Contact us today for more tips on how you can get through your bankruptcy filing smoothly.

This post was written by Trey Wright, one of the best bankruptcy attorneys in Tallahassee, Florida. Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.

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