Dos and Don’ts before Filing for Bankruptcy Protection

December 14, 2022 By: Carrie Weir

How to Get the Most Out of a Bankruptcy Petition

If you are struggling to keep your head above water financially, and you have no realistic prospects that your situation will improve, bankruptcy may be the best option for you. To ensure that you accomplish everything that you want with the bankruptcy, and that you don’t run afoul of any laws, here are some of things you want to do, as well as some actions you want to avoid.

Steps You Want to Take

• Get organized as soon as possible—Gather all your financial documents and put them in an accordion file, if possible. If you want to discharge debts in Chapter 7, you’ll need to submit to a “means test.” Having all your financial documents readily available can significantly simplify that process.
• Spend money only on essential items—Any purchases you make within a certain time period of filing for bankruptcy protection will likely be examined. If the items were deemed to be luxuries, you won’t be able to discharge them.
• Change your phone number—The bankruptcy filing will prevent creditors from calling you. You can, however, change your phone number whenever you want to, so that you reduce the harassing phone calls.

Things You Don’t Want to Do

There are many ways you can get into legal trouble before filing for bankruptcy:

• Don’t try to protect assets by giving them to family members—You can sell them, provided the sale is at market value.
• Don’t try to hide assets by retitling them—That’s the easiest way to be charged with bankruptcy fraud
• Don’t max out credit cards, assuming you’ll be able to discharge that debt—the bankruptcy court may not allow you to do that
• Don’t use retirement assets to pay any debts—Your retirement funds will be protected in bankruptcy

Contact an Experienced Rockwall, TX Bankruptcy Attorney

There’s no time like the holidays to get a fresh financial start. At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.