For those who are in over their heads financially, discharging debt through bankruptcy will provide a much-needed fresh start. To secure the best outcome possible, though, it’s necessary to avoid taking specific actions from day one that could jeopardize the case. Here are some of the most common missteps petitioners make before actually filing. 

3 Mistakes to Avoid Before Filing Bankruptcy 

1. Racking up Additional Debt

In the state of Ohio, some luxury debts and cash advances are not dischargeable if they're accrued shortly before filing. Typically, petitioners cannot eliminate credit card charges for luxury items if they were made within 90 days of filing and exceed $725. Additionally, cash advances totaling more than $1,000 that are taken out within 70 days of filing are not dischargeable. 

2. Transferring Assets 

Moving around assets before declaring bankruptcy could be considered fraud. Even when a petitioner's intentions are entirely honorable, the court will be skeptical of the transaction. Depending on the circumstances, the consequences of selling, transferring, or even gifting assets before filing could be severe. Not only do petitioners face a denial, but a court can impose criminal penalties upon them as well.

3. Paying Back Some Lenders 

Bankruptcy courts do not want to see some lenders getting preferential treatment over others. As such, those who plan on filing should not scramble to pay off some debts but not others. Otherwise, any funds used to pay back these creditors within 90 days of filing will be pulled by the bankruptcy trustee and redistributed among all lenders. 

For legal advice regarding bankruptcy, turn to Nancy V. Jacob. Practicing out of Cincinnati, OH, this seasoned attorney has been helping consumers discharge debt since 1989. Nancy understands the kind of stress her clients are under, and she never judges them for their circumstances. Instead, she aims to help them devise the best strategy possible for achieving debt relief. To learn more about working with this bankruptcy lawyer, visit her website, and then call (513) 921-1400 to schedule an initial consultation.