If you are in financial trouble, drowning in debt and being hounded by creditors, you may be considering filing for bankruptcy. Be sure that you do not do the following things before you file for bankruptcy.
Don’t Pay Off Debts With Your Retirement Accounts
You should not pay off debts with money in your retirement fund because you can protect these funds when you file for bankruptcy. You are going to need all of that money when you retire, so don’t needlessly give it away. Talk to your attorney at the law offices in Rockville Maryland before you do anything with your retirement accounts.
Don’t Create New Debt
Don’t put anything on credit in the 90 days before you file for bankruptcy unless they are necessary items such as food. This could be considered fraud, and you might not be able to declare bankruptcy if you do this.
Don’t Lie About Your Finances
When you fill out the paperwork for your bankruptcy, be completely honest. Don’t try to hide any assets or income from the court. This could cause you to face criminal prosecution with large penalties or jail time. Also, don’t forget any of your creditors when you list them, or that debt might not be discharged in the bankruptcy.
Don’t Transfer Assets
You should not try to sell some assets or transfer them to family or friends before bankruptcy to keep them safe. This could cause you to be prosecuted for fraud. It is all right if you had to sell assets to keep food on the table, but be prepared to explain any transactions like this.
Bankruptcy is a good way to get a fresh start if you have landed in severe financial trouble. Make sure it works for you by staying away from the questionable practices listed above.