When considering bankruptcy, some actions can greatly hamper your case and cost you dearly in the long run. To this end, working with a skilled bankruptcy attorney like those at Curt Davis Law Office PLLC will enable you to make the right decisions about your financial future. In Somerset, KY, clients look to this highly respected law firm for both the extensive knowledge of the law as well as a client-focused approach known to get results.
Filing for Bankruptcy? Here’s What You Should Never Do
1. Only Pay Off Specific Creditors
When people in debt make it a point to pay off a specific creditor, this is considered a preferential transfer. Certain creditors cannot be preferred over others according to the law, and trustees can even sue if they feel a preferential transfer has taken place. It’s best to wait for the bankruptcy case to play out before you begin to pay outstanding debt.
2. Put More Money Into Your Bank Account
While it’s OK to deposit income into your bank account when filing, you should refrain from depositing money from extraneous sources. Gifts or money afforded by friends and relatives should not be deposited, as this can negatively impact the decision of the bankruptcy court. You should also keep business transactions separate from your personal account.
3. Rely on Credit Cards
Once bankruptcy proceedings begin, it’s best to stop all credit card activity immediately. While the use of debit cards is OK, using credit cards during bankruptcy could appear irresponsible, especially if unnecessary luxury purchases are made, such as TVs or clothing.
Whether you’re considering filing for bankruptcy, have questions about a workers’ compensation claim, or require the assistance of a personal injury attorney, Curt Davis Law Office PLLC offers a range of essential legal services backed by more than four decades of experience. Call (606) 378-2525 to schedule a consultation in Somerset today. You can also check out the convenient online contact form to get answers to your specific legal questions.