what to avoid when filing for bankruptcy

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What to Avoid When Filing for Bankruptcy

What to Avoid When Filing for BankruptcyMichael Vereen

IntroductionE. Michael Vereen III graduated from Emory University with a master of laws. He has spent over 25 years practicing in the areas of DUI, criminal, and bankruptcy law. Since opening his own practice in 1989, E. Michael Vereen III has helped clients in and around the Metro Atlanta area.

Filing Chapter 7 bankruptcy is like navigating a labyrinth. Individuals who decide to file for bankruptcy should have an understanding of the common missteps that can expedite the process of filing when avoided. First, do not file Chapter 7 bankruptcy if income is above expenses owed. Bankruptcy is for individuals whose expenses outweigh their income. Second, individuals must stop using certain forms of credit ahead of filing. Specifically, stop using credit cards and credit card cash advances.

BankruptcyNext, take the time to sort through past-due bills. Do not pay any bill over $600; bankruptcy absolves those bills and/or lumps them into arrears payments, so paying the bill ahead of filing is tantamount to paying an expense twice. Individuals should refrain from making other large expenses before filing. Do not give large monetary gifts to friends or relatives, and avoid transferring or buying property.

Above all, make sure to hire an attorney versed in bankruptcy law. Attorneys can help decide when to file and assist clients in keeping track of their assets, all of which must be included on bankruptcy paperwork.