Are you ready to file for bankruptcy?
determine the best option for your situation.
Before You File
Things To Do
- Stop paying credit card bills
- Stop paying medical bills
- Stop paying any bills that are not a necessity
- If you do not have life, auto, renter, health or other insurance, you may want to obtain life insurance in that premium payments are deductible from income.
- If you have ACH drafts coming from your credit card, you may want to open and transfer your funds to a new bank account to avoid any further unwanted withdrawals.
- If you anticipate receiving and inheritance, you may want to temporary disown your inheritance prior to filing bankruptcy and reinstate your inheritance after the bankruptcy is closed.
- If you share a bank account with someone else or are a signatory on a bank account that is not yours, you may want to remove your name from the account prior to filing bankruptcy.
- Continue paying utilities
- Continue paying mortgage if you wish to keep your home
- Continue paying rent if you wish to remain residing in your home
- DO NOT WITHDRAW FUNDS FROM A RETIREMENT ACCOUNT
Things To Avoid
If you paid creditors within 90 days of filing the bankruptcy, the bankruptcy court will likely classify such transaction as a preferential or fraudulent transfer and recover those funds to be disbursed in accordance with the bankruptcy code. Please do not pay friends and family or attempt to pay creditors to the disadvantage of other creditors prior to filing bankruptcy. Any attempt to show favoritism to one creditor over another implies intent to commit bankruptcy fraud. Don’t pay family and friends if you are planning on filing bankruptcy.
Similar to payments to friends and family prior to filing bankruptcy, do not transfer title to assets or give away assets to family and friends prior to filing bankruptcy as a means of preserving said asset. Any transfer made within six years prior to filing bankruptcy is subject to review. If it is deemed that the transfer was made to defraud creditors, you will be charged with bankruptcy fraud. It is not worth it. Don’t transfer assets to family and friends if you are planning on filing bankruptcy.
If you fail to list an asset, such as an engagement ring, in the hopes of being able to retain it. Don’t! Again, any failure to list an asset can be deemed as a crime, and any unlisted asset can and will be seized by the trustee to be sold to pay your creditors. It is not worth it. List all of your assets.
How Pohl Can Help
If you have questions or concerns or are unsure of where to start, don’t worry! Schedule a free consultation with Pohl Bankruptcy. No matter the financial situation you may be facing, we will work with you to find the solution to get your life back on track.
