When learning about bankruptcy, you will probably stumble upon many strategies that may help you make the experience more positive. Tips and knowledgeable opinions may allow you to ensure the proceedings flow smoothly.
It is great to know what you should do in a personal bankruptcy, but just as important to understand what not to do, especially in the months before you file. The errors discussed below occur commonly and complicate many consumer bankruptcies.
Incurring new debt
Using your credit card to pay for car repairs or necessities before you file for bankruptcy may seem harmless. However, your creditors are sure to raise a challenge once they learn you were planning to file when you incurred the new debt.
Consider suspending the use of all credit as soon as you decide to file for bankruptcy.
Getting rid of assets
What is the harm in giving your antique grand piano to a family member for safekeeping during your bankruptcy? Simply put, it is a form of fraud, and if the trustee finds out, you may lose the assets you tried to protect.
The same goes for any valuable property transferred to another before your filing. It is best not to dispense with any assets or transfer them into another’s name in the months before you file.
Assuming you have ample knowledge
You probably know a few people who have gone through bankruptcy, and they may offer lots of advice. While you could learn much from the experiences of others, it is no replacement for legal knowledge.
Since each state has unique laws, it serves your interests to learn about the requirements and rules for bankruptcy in Florida. Legal guidance can help you understand these laws and avoid making missteps.