Common Mistakes Made Prior to Filing Bankrutpcy “What You May Have Heard From a Friend or Family Member”
We cannot stress enough the importance of educating yourself before taking steps to alleviate a financial issue or preparing yourself to file bankruptcy. Unfortunatly many individuals rely on friends and family members when making these decisions that may have little to no clue on what you should do.
The following is a list of DON’T’s that we have seen more often than we would like.
Please note that all of these are not necessary, as all it takes is a simple phone call, and you could sit down with one of our Orlando Bankruptcy attorneys for a free consultation and get educated by a professional.
Do not max out all your credit cards prior to filing: Many individuals get advised that by doing this you will “make out like a bandit” because after you max them all out, you just file and they will all be taken care of in your bankruptcy….WRONG….if you were to attempt this, you would be committing FRAUD and if you attempted to file bankruptcy your case could be dismissed, you could be denied your discharge, you could have to pay all the money back with interest, penalties, and attorneys fees
Do NOT transfer your name off of personal property like houses and cars prior to filing in hopes that you can save them and no one will find out…..WRONG……the bankruptcy court has been around for a while and the trustees and attorneys that you will come across when the bankruptcy is filed are some of the smartest people you will meet. Most of them have seen every trick in the book and trust me when we say this…whatever you think you are getting away with, you aren’t. the bankruptcy rules provide for look back periods when it comes to transfers which range from just one or two years to several years. in addition when you file your bankruptcy there a certain sections that require you to disclose certain transfers.
Do NOT hide assets in hopes that know one will find out. in our experience, attempting to hide assets never ends well for the client. Hiding assets can lead to your case being dismissed and or criminal charges being filed in addition to the assets be seized. Many times some simple planning prior to filing can go a long way when it comes to protecting your assets.
Do NOT take all your money out of your bank accounts and stash it somewhere. the trustees assigned to your case will inherently find this out and it can lead to a client having a really bad day to say the least.
Do NOT give things to your friends and family to “hold” for you until your case is over.
Do not sell things to friends, family, or anyone else for far cheaper than the item is worth in hopes to buy it back from them after your case is over.
Call Orlando Bankrupty attorney Michael Ferrin and Victoria Anderson, at Anderson & Ferrin, Attorneys at Law, P.A., Now for a Free Consultation at 407-412-7041.