Avoiding Common Mistakes Before Filing for Bankruptcy

Failure to Disclose the Whole Truth

Your attorney works with the information you provide. At Bunch & Brock, we offer solid legal advice and representation. No matter the state of your financial matters, telling the complete truth to your attorney will result in a better outcome. Contact us to schedule an initial consultation and to learn more about how to protect your rights.

Deciding to file for bankruptcy is not an easy decision. You have probably struggled, unsuccessfully, for months or even years to put your finances back on track.

Once you make the difficult choice to file, it is important to avoid common mistakes that could prove costly down the road.

At Bunch & Brock, Attorneys at Law, in Lexington, Kentucky, we truly care about our bankruptcy clients. For more than 30 years, lawyers at our firm have helped individuals, families and businesses make the debt relief choices that suit their needs.

We want to help you make decisions that maintain your best interests while stabilizing your financial future. To discuss your situation with a knowledgeable attorney, contact us at 859-254-5522.

Using Credit Cards Before Filing

Once you have made the choice to file for bankruptcy, it may be tempting to charge up your credit card balance. This is not a wise choice. Certain charges and cash advances within 90 days of filing may be ineligible for discharge.

Paying Family Members Before Filing

If you owe a significant amount of money to family or friends, repayment before filing could be a mistake. Bankruptcy trustees can reclaim money paid to family or friends for personal loans within one year of filing for bankruptcy.

Using Your 401k to Pay Down Debt

During the bankruptcy process, most retirement accounts are exempt from consideration as a source of payment. Withdrawing money in your account to pay down debt prior to bankruptcy may not be in your best interest — you could have protected that money by simply leaving it untouched.

Transferring Property Prior to Filing

Certain gifts or other transfers of property can be reclaimed by a bankruptcy trustee. If you transferred property prior to filing, it may be subject to investigation for intent to hinder, delay or defraud a creditor.

Failure to Obey Court Orders

If you are involved in a collection lawsuit, you must comply with all state court orders. Collection cases may proceed against you until you have filed for bankruptcy protection. After you have filed bankruptcy, you must obey all bankruptcy court orders.

Failure to Disclose the Whole Truth

Your attorney works with the information you provide. At Bunch & Brock, we offer solid legal advice and representation. No matter the state of your financial matters, telling the complete truth to your attorney will result in a better outcome. Contact us to schedule an initial consultation and to learn more about how to protect your rights.