What Not to Do When Considering Bankruptcy

Sunday, August 20th, 2017, 1:59 am

If you ever find yourself in a tight financial spot, you may discover that bankruptcy is the best option for you. As a solution to finding your way out of debilitating debt, bankruptcy has helped thousands of people regain control of their life. However, if you're considering filing for bankruptcy, there are a few things you'll want to avoid doing.


It can be easy to make mistakes when filing for bankruptcy. Let's check out a few of the biggest things you'll want to avoid if you find yourself considering bankruptcy.


Don't Use Credit CardsĀ 


Many people assume that once they file for bankruptcy, all charges on their credit cards will be wiped away. Unfortunately, continuing to use credit cards for luxuries, trips, clothing, and electronics will only dig you deeper into a financial hole. If the court feels like you're trying to take advantage of the bankruptcy process, you may still be on the hook for these expenses. As soon as you think bankruptcy may be in your future, stop using your credit cards.


Don't Transfer Property or Money


If you're about to file for bankruptcy, you may attempt to "protect" some of your assets by handing them off to a friend or family member. Unfortunately, this can also be perceived as trying to work your way around the bankruptcy process, potentially putting you in even more financial trouble. If you have assets you'd like to protect in the bankruptcy process, talk with your bankruptcy attorney about your options.


Don't Make Out of the Ordinary DepositsĀ 


If you're far in debt, you may have asked friends or family members for a bit of help paying off what you owe. While it's great if someone is willing to help you, a large deposit into your bank account could be suspicious to the bankruptcy process. Avoid making any out of the ordinary deposits when considering bankruptcy.


Always work with a trusted bankruptcy attorney when going through the bankruptcy process. For a free consultation about your New York City bankruptcy case, contact Michael F. Kanzer & Associates today.

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