Pre-Bankruptcy Pitfalls to Avoid
Filing bankruptcy is tricky enough as it is, but there are several spots on the path through bankruptcy where people commonly get stuck. We want to help you avoid these common mistakes while you go through the bankruptcy process. Be sure to avoid the following trouble spots so that you can have a worry-free bankruptcy.
- Recent Credit Card Purchases - The court makes the assumption that people filing bankruptcy know that they will file at least 90 days in advance. Therefore, the court will question any purchases of $500.00 or more made with a credit card within 90 prior to your filing date. Keep in mind that these types of purchases are subject to non-dischargeability, if they are debts included in your bankruptcy.
- Recent Payments to Family Members or Creditors - As with credit card charges, the court will reclaim any payments you have made to family members or friends within a year prior to your filing date as well as any payments made to creditors within the 90 days prior to filing.
- Protect Your Inheritance - The court can request the turnover of any non-exempt assets that debtors have inherited within 120 days prior to filing for bankruptcy. Your attorney can provide the best advice on how to move forward with your bankruptcy with these types of possessions.
- Failing to List Communal Property - Many people who file for bankruptcy fail to list communal property among their assets. If you have been married and resided in any state outside of Utah with your spouse, please speak with your attorney to find out if you fall under this category.
- Disclosing Assets - It is critical that people filing for bankruptcy produce a complete and accurate list of their assets. This can be difficult and mistakes are often made. It is important to list any and all assets, no matter their value.
- Required Credit Counseling Courses - The court requires all debtors to complete a credit counseling course before filing bankruptcy. Failure to take the course prior to filing or filing your bankruptcy paperwork with an expired credit counseling certificate will result in the immediate dismissal of your bankruptcy case.
With an experienced legal team on your side, you can avoid these and other trouble spots. Contact us for an initial consultation to further assist you through the bankruptcy process. Fill out an evaluation form today!