Bankruptcy Do’s and Don’ts

If you are having financial troubles, bankruptcy could be a solution that you may want to look into. But first, it’s important to know a few dos and don’ts before filing. Below are some helpful tips to assist you if you’re considering filing for bankruptcy.

DO speak to a bankruptcy attorney.

Take advantage of our free consultations and Walk-In Wednesdays to learn about bankruptcy and how it applies to your current financial situation. A consultation does not mean that you are committed to filing. It does help evaluate whether bankruptcy is right for you.

DON’T transfer property or money.

Transferring property or money before declaring bankruptcy is not an option. The trustee will ask about any transfers at the start of your case, and if you’re hiding anything, the courts might dismiss your case.

DO be open and honest with your attorney.

When you start working with a bankruptcy lawyer in KS or MO, be sure to tell them everything. Even though you might be embarrassed, your lawyer can only help if they have an accurate picture of your assets and debts. Anything that isn’t listed in your petition may not be discharged.

DON’T incur any new debt.

Talk to your bankruptcy attorney if you plan to make any big purchases. It might be okay to secure a car loan before filing bankruptcy, but you don’t want to make unnecessary purchases like plane tickets or electronics.

DO keep track of your expenses.

Many individuals don’t realize where their money is going. Remember to write down your expenses and be as detailed as possible to establish that you are not making any unnecessary purchases.

DON’T panic.

Bankruptcy is designed to protect people who are going through financial troubles. Don’t be afraid to explore bankruptcy and the benefits it can offer.

DO file your taxes.

Make sure that you are current on your tax filings before filing bankruptcy. With a Chapter 7 bankruptcy, the court will require you to provide your most recent tax filings. In a Chapter 13 bankruptcy, the courts will ask you to file the last four years of tax returns.