Filing for personal bankruptcy can alleviate some of your financial burdens while giving you time to pay back other creditors in full. However, what you do before filing can impact the outcome of your case. To prevent complications, avoid the following blunders. 

3 Transactions to Avoid Before Filing for Personal Bankruptcy

1. Transferring Money or Property

When you file for personal bankruptcy, a trustee will examine assets and bank accounts closely. To limit their investigation, you might be tempted to transfer money to someone else’s account or put property and car titles in a relative’s name. This is a bad idea, as concealing assets is considered fraud.  

2. Paying Creditors

To lower your debt and make the bankruptcy proceedings less intrusive, you might try to pay back some creditors or settle loans before filing. It’s fine to make monthly bill payments, but don’t spend large sums to pay certain creditors everything you owe. The bankruptcy court will track down the creditors who got paid and sue to get the money back. 

3. Using Credit Cards

To cover daily expenses and monthly bills, use your debit accounts instead of credit. If you use credit cards before filing for personal bankruptcy, the credit card company could alert the court. They’ll request that these charges aren’t discharged with the rest of your debt.

To ensure smooth personal bankruptcy proceedings, contact Brian R. Cahn & Associates, LLC in Dalton, GA. Serving clients throughout northwest Georgia, the attorneys have over 20 years of experience in bankruptcy law. They’ll advise you on your debt settlement options and help you take the necessary steps to rebuild your credit. To schedule a consultation, call the Cartersville office at (770) 382-8900, dial (678) 247-1408 for the Woodstock location, and (706) 275-6022 for help in Dalton. To prepare for the meeting, find answers to frequently asked questions online.