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10 Tips If You are Considering Bankruptcy

A Few Tips on What to Do and What Not to Do Before You File for Bankruptcy

If you are considering filing for bankruptcy in the next few months, you should know that there are things you may be tempted to do now that could create problems with your bankruptcy filing.

Whether you will be filing for Chapter 7 or Chapter 13 personal bankruptcy, the following tips should help you qualify for bankruptcy, save your personal possessions, and avoid the embarrassment of having the bankruptcy court undo an action you may have taken involving debts to relatives.

  1. DO NOT take cash advances on your credit card within 60-90 days of filing for bankruptcy.
  2. DO NOT use credit cards within 60-90 days of filing bankruptcy.
  3. DO NOT transfer any property to a relative within 1 year of filing for bankruptcy.
  4. DO NOT pay relatives for debts that you owe them prior to filing.
  5. DO NOT borrow from or take a hardship withdrawal from your 401(k) or IRA before filing for bankruptcy.
  6. DO continue making payments on any property you want to keep, like your house or car.
  7. DO keep good records of your financial affairs, including your bank statements, your pay stubs and your bills.
  8. DO assemble all documents that you will need, like any judgments against you, including divorce decrees.
  9. DO have your last two years' worth of tax returns available.
  10. DO remember to be completely honest about your financial affairs with your attorney and the bankruptcy trustee. Your case can be audited for several years after your discharge.

Pre-petition Planning

Bankruptcy lawyer Heather Dorn can advise on pre-petition planning to legally transfer any non-exempt assets that would be forfeited in a Chapter 7 debt liquidation.

Contact the Dorn Law Firm at 248.438.8716 or 866.684.5816 for a free consultation about Chapter 7 bankruptcy or Chapter 13 personal bankruptcy. Evening and weekend meetings are available by appointment.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

The Dorn Law Firm in Southfield, Michigan serves clients throughout Oakland County and Metro Detroit, including Royal Oak, Mt. Clemens, Pontiac, Sterling Heights, Warren, Bloomfield Hills, Monroe, Taylor, Livonia, Farmington Hills, Novi, Canton, Dearborn, Oak Park, Birmingham, Troy, Ann Arbor, Flint and Macomb County, Wayne County, Monroe County, Washtenaw County, Livingston County, Genesee County and Lapeer County.

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