What Should I Avoid Doing Before, After Bankruptcy?

As you go through your Chapter 7 bankruptcy proceedings, you must remember that at any time, the Kentucky bankruptcy court may decide to dismiss your case due to a failure to follow the required procedures. Of note, you may face harsher consequences than just a dismissal if the court believes that your negligent actions were intentional. So, without the need for further introduction, please read on to discover what mistakes to avoid making before and after filing and how a seasoned Louisville, Kentucky Chapter 7 bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you make the right decisions.

What should I avoid doing before filing for Chapter 7 bankruptcy?

Importantly, before you fill out and file your Chapter 7 bankruptcy paperwork, you should not make any sudden, drastic changes to the assets in your current possession. That is, you should not change the title to your vehicle to your child’s name, remove your name from a jointly held bank account with your spouse, or otherwise. Even if this is done innocently and is a mere coincidence, the Kentucky bankruptcy court may accuse you of hiding assets from your appointed bankruptcy trustee. This is because your trustee would have otherwise taken control over these assets, liquidated them, and used the funds to pay back your outstanding creditors. With such accusations, you may be facing criminal penalties and the ultimate dismissal of your bankruptcy case.

In addition, you should not purchase luxury items that you simply cannot afford with your credit cards right before your bankruptcy filing. This is because these creditors may be allowed to dispute the discharge of these debts. So, you may still be held responsible for paying them off in full at your case’s close. This may offer you little to no financial relief in the long run.

Lastly, you should not submit your bankruptcy filing prematurely if you anticipate receiving a significant payment(s) soon. For example, you may expect a considerable end-of-year bonus from your employer. Or, your loved one may have recently passed away and left a high-value asset in your name (i.e., real estate property, artwork, jewelry, etc). This is because, again, your trustee may exercise their authority to take and sell these assets to repay your unsecured creditors.

What mistakes should I avoid making after my bankruptcy case?

Even though you may see the light at the end of the tunnel for your Chapter 7 bankruptcy proceedings, there may still be ways you can slip up, so to speak. For one, you must not forget to attend your debtor education course. This is because if you cannot show the Kentucky bankruptcy court a certificate of completion, they may not discharge your eligible debts. It is worth mentioning that you should also not skip the credit counseling course before you file and the meeting of creditors during your case proceedings.

Last but not least, you should not cause any friction between yourself and your appointed bankruptcy trustee. This means supplying them with all the financial documents they request of you, even if they are not necessarily required at the time of your initial filing. Otherwise, your trustee may begin to grow suspicious of your hiding assets or other bad intentions, which may lead to nothing but trouble and complications.

Before you take any further initiative with your Chapter 7 bankruptcy case, we urge you to consult a competent Louisville, Kentucky consumer bankruptcy lawyer. Most definitely, the team at Schwartz Bankruptcy Law Center is eager to work with you.