Deciding to file for bankruptcy can be a major turning point in your life, it gives you a chance to start over and make some wise financial decisions in the future. But in the interim between deciding to file for bankruptcy and actually filing there are some things you shouldn't do as they can actually make your situation worse.
- Don't touch your pension to pay for anything.
- Don't give away assets to protect them from creditors.
- Don't sell your assets.
- Don't borrow any money.
- Do not provide your contact information to any creditor who doesn't already have it.
- Don't give debt consolidators information about your personal finances.
- Don't tell your creditors that a bankruptcy is in the future.
- Don't change your marital status.
- Don't post date checks.
- Don't change your housing situation.
Once you've decided to file for bankruptcy you'll want to seek legal advice as soon as possible. Allmand Law will not only help you file your bankruptcy paperwork but they will also be able to answer any questions you have about a bankruptcy, how to proceed, how to handle your finances at each stage of the game and they'll be happy to explain why each of the following tips are important to follow.
It's best if you don't make any major life changes before you file for bankruptcy, you want to keep your financial status at basically the same level and you don't want to throw any more money at your creditors.