Sunday, July 21, 2024

What to Do Before Filing for Bankruptcy

It is important that you file bankruptcy accurately and protect all assets if you make the decision to file. This will ensure you have a high-quality life. Although bankruptcy can be a great way to get your finances in order, it can also have serious consequences for your financial transactions and your bankruptcy status. These are the top mistakes you should avoid when filing for bankruptcy.

Do not keep a bank account with the same bank that you are using for your personal loans

If you are behind on your payments, your bank can take money out of your account to pay your loan. This removal is done without notice. It can be beneficial to keep your money under control by removing your bank account from the bank with which you have a personal loan or credit card. Wells Fargo is also well-known for locking up accounts of clients who have filed for bankruptcy. This could lead to your funds being held for up to 60 days.

Do not forget about extra expenses

You should report expected income, as well as income that will come to your account automatically if you have money owing to you or items such as a tax refund.

Transferring the Titles of Your Assets Prior to Filing

You can be charged for bankruptcy fraud if you transfer the title to your assets within six months of filing bankruptcy. It is best to file for bankruptcy at least one year prior to the date you plan to file.

Failing to disclose all assets

These assets can include a car you purchased for someone else or a part of a timeshare. Florida bankruptcy law requires that you disclose all assets. This can include collectibles, jewelry, and furniture. These assets could hinder your approval or lead to bankruptcy fraud charges.

This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation. Click here to learn more!

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Hank Pedro
the authorHank Pedro