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What to avoid before filing for Chapter 7

Bankruptcy is a scary reality for many people living in Mississippi. Fortunately, the rate of people filing for bankruptcy appears to decrease around the country. In particular, many older Americans over the age 65 no longer have to seek out bankruptcy

It is vital to realize filing for bankruptcy is not the end. In some cases, it is the only way to take control of your financial future. However, you need to go through your bankruptcy the right way. Many people doom themselves from the start by making one of the following mistakes before or during the bankruptcy. 

Avoid using your credit card

When you suffer from extreme credit card debt, it may seem like a good idea to rack up more debt in the months before you file. This is a poor decision because a judge may still require you to pay off a large portion of the debt if it looks like you tried to get recent purchases discharged from the bankruptcy. You should stick to making purchases through your debit card in the few months before you file. 

Avoid transferring assets

A lot of people think they can protect some of their assets by giving them to family members and friends. Concealing assets is not a good idea, and you should assume a judge will learn of such actions eventually. A typical example of this involves transferring the title of your car to another person's name. 

Avoid suing anyone

When there is someone you want to sue, you should wait until you resolve your bankruptcy first. Any legal claim you currently have in process can become an asset taken into consideration by the bankruptcy court. Even claims you have filed with others but have not gone to court yet can still come into play. It is a good idea to seek out sound financial advice before pursuing any type of legal claim. 

 

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