Filing for bankruptcy can offer welcome relief from the pressures of unmanageable debt. But before you file, there are a few things you should avoid doing so the process can move as swiftly and efficiently as possible. The bankruptcy attorneys at the firm of Frances H. Hollinger, Attorney at Law, serve clients throughout the Foley, AL, region. Below, they discuss three things you shouldn’t do when filing for bankruptcy relief.

3 Things to Avoid When Filing for Bankruptcy

1. Go on Lavish Spending Sprees

Bankruptcy can eliminate your debts, so it might be tempting to consider purchasing a few big-ticket items on your credit cards before surrendering them. But bankruptcy law courts will look at your spending in the months leading up to your filing, and they will likely question any major purchases or substantial spending you made.

2. Hide Money or Assets

Depending on the type of bankruptcy you file, your assets might be sold to offset your outstanding balances. This can be a scary concept, but it is part of the process, and your bankruptcy attorney can help you find solutions that might avoid it. One thing you should most certainly not do is try to hide any money or assets by transferring them to other accounts or temporarily giving them to friends of family members with the goal of reclaiming them later. This is a violation of bankruptcy law, and if the courts find out about it, you could face legal issues.

3. Take Future Payments

In the months after your bankruptcy, you may have a big tax refund or a long-overdue payment from a client. Know that as long as your bankruptcy is active, and your debts have not yet been settled by the courts, these future monies will go toward paying off what you owe. If this scenario fits your situation, it may be in your best interest to delay your bankruptcy filing until all payments have come in.

By knowing what to avoid in the months before, during, and after a bankruptcy filing, you can take control of your finances and start on the path toward a brighter financial future. To speak with a bankruptcy attorney about your case, contact Frances H. Hollinger, Attorney at Law. Give them a call at (251) 943-9030 or visit them online to schedule a consultation today.