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Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

6 Things to Avoid Prior to Filing Bankruptcy

Posted By Allmand Law Firm, PLLC || 8-Aug-2016

If you are considering bankruptcy or have plans to file bankruptcy in the future, getting prepared ahead of time can affect the outcome of your case. At Allmand Law Firm, PLLC, we know that failing to prepare or taking the wrong steps can significantly jeopardize the success of a case. This is why we do all we can to educate our clients about their cases and their rights, and to provide them with all the information, assistance, and resources to make the process run as smoothly and sufficiently as possible.

We’ve seen how many debtors have made mistakes prior to bankruptcy filings – some with disastrous consequences. Here are a few things to avoid before filing bankruptcy:

  1. Neglecting to file tax returns - Your tax returns are important and are required as part of your petition and schedules (filing paperwork). They are important in helping satisfy back income tax claims. If tax returns are not filed up to date, your case could come to a standstill.
  2. Providing false information - When you decide to begin the filing process you will be required to submit financial data to your trustee or attorney that will be reviewed by the court. Your information should be complete, accurate and honest. Failure to do so may incur criminal prosecution, case dismissal or debt discharge not being granted.
  3. Changing titles or moving assets - If you do this right before filing, it may look as if you are attempting to hide assets. You may want to wait a certain period before filing.
  4. Running up new debt - Basically, if you rack up a ton of debt within 90 days of filing, it may not get discharged. In this case, fraud would have to be proven by the creditor. Meaning, maxing out creditors because you know you will file bankruptcy could mean you would be liable in the end.
  5. Choosing to pay certain people or creditors over another - In some cases, a bankruptcy filing may undo a payment you made depending on the circumstances.
  6. Hiding assets or failing to report an asset you anticipate on receiving (will, trust, lawsuit settlement, etc.) - You can review your options with a Dallas / Fort Worth bankruptcy attorney prior to filing to learn how to protect such assets legally.

Our Dallas / Fort Worth Bankruptcy lawyers our passionate about helping clients secure a brighter financial future. If you have questions about getting started or how we can help improve your particular situation, contact us for a FREE financial empowerment session.

Our lawyers are available to help you explore your debt relief options – including Chapter 7 and Chapter 13 bankruptcy – as well as other ways to defend against foreclosure or gain control of your finances.

Categories: Bankruptcy
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