Top Three Ways to Screw Up Your Bankruptcy Before You File It

Unfortunately, many people do absolutely the wrong things in an effort to avoid filing bankruptcy. What's worse, these things can often hurt them unnecessarily or cause problems for the bankruptcy that they inevitably end up filing. Some of these dubious Greatest Hits are:

• Transfer title to property, like a home or a car, to someone else for less than its true value (or nothing). This move is considered fraudulent, in and out of bankruptcy, and is a very bad idea! Don't try and hide assets. You are required to disclose transfers at least two (2) years before your filing, and the bankruptcy trustee may look into transfers as far back as four (4) years. If this is discovered, the trustee will simply seek to reverse the transfer and sell the property!
• Pay back debts to relatives in full. Payments to "insiders" like friends or relatives made up to a year before you file must be disclosed. If they are significant enough, the trustee may seek to get the money back, which could be very embarrassing. There are ways to deal with debts to friends and family after bankruptcy, which makes advance payment another bad idea.
• Raiding a pension or IRA for money to pay bills. This is not a good idea because you are taking money that would otherwise be unreachable by creditors in or out of bankruptcy and paying them with it! You are also sacrificing your future in a vain attempt to sole a present problem.
  

If you are in financial difficulty, before doing anything you might regret (or cause you problems), contact my office to discuss your options. If there is a way to avoid bankruptcy I will tell you. You will thank yourself later!

Related Topics

• How do I deal with debts to friends and family in bankruptcy?
• How to Ruin Your Retirement by Raiding Your Pension in Order to Avoid Bankruptcy.
• Pensions, 401(k)s, IRAs, and Annuities are Most Often Protected in Bankruptcy.

Looking for more information about bankruptcy? Get the answers to the most frequently asked questions by downloading my free book, Top Questions People Ask About Filing Bankruptcy in New Jersey. It will give you the answers you need all in one place. Then call me at 888-857-8418 or contact me through this site for an appointment for a free consultation to discuss your case.