Are you considering filng bankruptcy? Do you have questions about what is ok and not ok to do prior to filing chapter bankruptcy? Read the list below to be sure you are not making a bad situation worse.Don’t: Make Last Minute Charges What does this mean? It turns out they were talking about charging right up to their credit limit and then filing bankruptcy. This is wrong. First, it’s fraudulent because they know when they’re incurring the debt that they have no intention of paying it back. Under bankruptcy law, creditors can object to a particular debt being wiped away. The typical reason is fraud. When the creditor gets the notice that you filed, it takes a look at your account history. If it sees a bunch of charges right before filing, it will get suspicious. Do: Tell Your Lawyer Everything Do: Pay Something Toward Recent Charges Do: Pay Your Basic Expenses — And Your Lawyer Don’t: Hide Assets Neither scenario will work. Either way, the money is still their property. They still have to list it on their petition. The main rule is to disclose, disclose, disclose. First tell your lawyer everything about your case. Then, make sure everything is listed somewhere on your petition. The most trouble you can get into with a bankruptcy court is by hiding something. Do: Get Credit Counseling Don’t: Transfer Property |