If you are getting ready to file Chapter 7 or Chapter 13 bankruptcy, you have hopefully secured the advice of a Nebraska bankruptcy attorney – advice that should cover not only what to do before filing bankruptcy, but what NOT to do:
Raiding retirement accounts. You may be thinking of cashing out your retirement accounts prior to filing bankruptcy. Big mistake. Retirement accounts are usually exempt and protected, which means you’d get to otherwise retain that asset. .
Changing property ownership. Transferring the ownership of property may not protect it from bankruptcy, and will probably get you in hot water with the bankruptcy trustee to boot. The trustee can undo some property transfer that occurred during the two years prior to filing bankruptcy.
Paying off family loans. You should not pay off any loans made to you by family members prior to filing bankruptcy. If you do so within one year prior to your filing, the money may be reclaimed and added to the bankruptcy estate.
Lying about your assets. If you are filing for Chapter 7 bankruptcy, you are required to disclose all your income and assets. If you leave out any assets or income, your case could be dismissed or you could have your discharge denied.
Transferring assets. Attempting to stash assets — a car, cash, property, etc. — with someone else with the understanding that they will return it to you after you file bankruptcy is not only forbidden, it’s also a good way to lose those assets.
Not consulting a bankruptcy attorney. An attorney can help you determine the best bankruptcy choice for you and advise you on how to protect assets that may be at risk. Bankruptcy is a complicated area of the law and although you might be tempted to “do it yourself,” it is likely that choice would do you more harm than good.
Figuring out whether to file bankruptcy can be overwhelming. Contact Koenig│Dunne today and schedule your free consultation with one of our experienced bankruptcy attorneys.