Mississippi Consumer Help Blog
I have listed some of the mistakes people make right before they file bankruptcy. People do these things because of mistaken information they got from someone else. Talk with your bankruptcy lawyer and ask questions. Your lawyer can protect you and your property as long as you tell them everything up front. Disclose all financial information to your attorney and prevent future surprises. You don’t want to end up losing the things you were trying to protect and save. If you have questions about the reasons why we don’t want you to do these things right before you file bankruptcy, call us. Once you hear the explanation, everything will make sense . Some of these thing you can do, you just need to wait for the right time.
- Don’t pay money to family or friends and don’t pay back loans to family members or friends.
- Don’t file if you are about to receive an inheritance, personal injury settlement, or large sum of money.
- Don’t transfer, give away, or gift property to anyone, or to a business or corporation.
- Don’t take money out of your retirement plan, IRA, or 401k.
- Don’t keep your money in the same bank where you owe money.
- Don’t hide land, vehicles, property, assets, or other things you own from your attorney.
- Don’t take out a second mortgage, payday loans, or incur new debts.
- Don’t put your money in your kids’ bank account or someone else’s bank account.
- Don’t omit or ‘save’ a credit card for after your bankruptcy, and don’t hide debts from your attorney.
- Don’t conceal information about your finances from your attorney. Even if you feel the matter is sensitive, illegal, or likely to cause problems among family members or friends; or if you believe there is no way anyone would find out about something, don’t hide it from your attorney.