People may seek out quick answers when they are under significant financial hardship. Trying to combine your debt and moving money around can be appealing, but you could be better off filing for bankruptcy protection. If you want to file for bankruptcy under Chapter 7 or Chapter 13, you should sit down with the best bankruptcy lawyer in Rancho Cucamonga CA and undertake some pre-bankruptcy preparation to make the most of this remedy.
Keep reading to learn some of the essential dos and don’ts that you should and shouldn’t follow when considering bankruptcy. Then contact Law Offices of Terrence Fantauzzi at (909) 552-1238 when you are ready to discuss the pros and cons of Chapter 7 versus Chapter 13 and other issues with the best bankruptcy lawyer in Rancho Cucamonga CA.
Important Dos
Prior to submitting your bankruptcy case, it can be wise to take the following actions, depending on your individual needs and circumstances:
- Rent, utility, and other late bills must all be paid in full
- After you file the petition, stop automatic payments to prevent money from being unintentionally taken out of your account
- File any tax returns you might have overlooked in the past
- Any bank where you have an unpaid loan should close your checking and savings accounts. If a bank intends to use the money to pay back a loan you owe them, it is simpler for the bank to obtain court authority to confiscate your account.
- Finish the credit counseling program. In fact, doing this is a prerequisite for filing under Chapter 7.
Important Don’ts
You should refrain from doing particular items before to filing for bankruptcy, such as:
- Increasing your debt through cash advances, loans, or credit cards within 90 days of filing for bankruptcy could result in fraud accusations from your creditors who will claim that you never planned to pay it back because you knew you were going to file for bankruptcy.
- Giving presents or making other conveyances of money or property could be viewed by the court as fraudulent transfers, which could result in bankruptcy relief being denied.
- Repaying loans to relatives, friends, or business associates is not a good idea. Prior to filing for bankruptcy, paying off arm’s length debts might be seen as preferential transfers. The recipient could be sued by the bankruptcy trustee to recover the funds.
- Taking money out of your retirement accounts is not advised. These savings are a crucial part of your future financial stability and are typically exempt from being liquidated during bankruptcy.
Make sure to let the best bankruptcy lawyer in Rancho Cucamonga CA know as soon as possible if you’ve already carried out any of the “don’ts” on the list so that they can take that into account while crafting your Chapter 7 or Chapter 13 case.
Now is the time to contact Law Offices of Terrence Fantauzzi at (909) 552-1238 to learn how we can help you move forward.