Preparing to file for bankruptcy in Connecticut? Don’t do these 15 things

StopIf you’re considering filing for bankruptcy in Connecticut, it’s important to be prepared.  There are some things you need to do in advance.  And just as importantly, there are some things you SHOULD NOT DO when preparing to file for bankruptcy.

Here are a few key things not to do right before filing for bankruptcy or when filling out your bankruptcy petition:

  1. Don’t leave out or try to hide any bank or other accounts (e.g., savings, checking, brokerage, credit union, PayPal, etc.)  You are required to disclose all of your assets.
  2. Don’t transfer any assets out of your name.  There is a right way and wrong way to shelter assets and moving things out of your name is the wrong way.
  3. Don’t charge anything to your credit cards before filing.  (It may be perceived as “bad faith” or actual fraud)
  4. Don’t use “convenience checks,” i.e., those “checks” that the credit card companies send you out of the “goodness” of they’re hearts.  They’re equivalent to borrowing money or charging money to a credit card.
  5. Don’t transfer balances from one credit card to another.
  6. Don’t pay off one creditor so you won’t have to list them in a bankruptcy.  the Trustee has the power to get that money back which will make one creditor very mad.
  7. Don’t give or repay money to family members or friends.  The trustee can view such payments as bad faith and seek to undo them.
  8. Don’t tell creditors that you intend to repay them.
  9. Don’t file for bankruptcy If you’re about to get a large tax refund or inherit money.  Check with your attorney to figure out the best way to approach the situation.
  10. Don’t avoid telling your attorney about any business or company or partnership or even any hobby in which you participate.
  11. Don’t buy a new house or apartment when you are considering bankruptcy (at least not without discussing it with your attorney first).
  12. Don’t give away any property as a gift.  The trustee may a gift of any significant value with suspicion which could affect the outcome of your bankruptcy case.
  13. Don’t withdraw money from your 401(k) or other retirement accounts.  Retirement money is usually protected in a bankruptcy filing.  If you withdraw it beforehand, then it will likely go to creditors.
  14. Don’t borrow money from payday loan services.
  15. DON’T HESITATE TO ASK YOUR BANKRUPTCY ATTORNEY ANY QUESTIONS IF THERE IS ANYTHING YOU’RE NOT SURE ABOUT.

For a free initial consultation and to get all of your questions answered, please contact me to set up a meeting or a phone call.

Contact

Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710
(203) 757-3437

About Eugene Melchionne Attorney at Law

Eugene S. Melchionne, Esq. - Mr. Melchionne is a graduate of The University of Connecticut (B.A. 1977) and Drake University School of Law (J.D. 1980) where he received the American Jurisprudence Award for academic excellence.Since 1980, Mr. Melchionne has focused his practice in the areas of consumer bankruptcy, workouts and foreclosure defense in distressed real estate markets, real estate transactions, condominium law, commercial litigation, business organizations and probate. Prior to opening his office in 1990, Mr. Melchionne was associated with Grady & Riley in Waterbury, Connecticut and DiPietro, Kantrovitz & Brownstein, P.C. in New Haven, Connecticut. From 1990-1998, Mr. Melchionne was of counsel to Bender & Anderson handling that firm's complex litigation and trials. In addition to his practice, Mr. Melchionne was an adjunct professor at the American Institute of Banking and Teikyo Post University teaching bankruptcy, real estate, commercial and consumer law. Mr. Melchionne also advised the Corporation Counsel's office for the City of Waterbury on bankruptcy and foreclosure matters and mentored junior attorneys in that office. In 2005, Mr. Melchionne was appointed State Chair for the National Association of Consumer Bankruptcy Attorneys (NACBA). He acts as a liasion between the national organization and Connecticut attorneys who are members of the Association. He has fostered education of attorneys in the bankruptcy field and increased access of the public to bankruptcy relief in light of the law passed in 2005. In 2007, Mr. Melchionne was elected as Vice President of the Bankruptcy Law Network, an internet resource for consumer information on bankruptcy and now serves as its President. Bankruptcy Law Network has three sister sites, Credit Law Network, Debt Law Netowrk and Mortgage Law Network. Areas Of Practice: Consumer Bankruptcy Workouts & Foreclosure and Repossession Defense Real Estate Closings Honors: Super Lawyer Connecticut - 2007, 2008 Member of the Month - April 2006, National Association of Consumer Bankruptcy Attorneys American Institute of Banking Community Service - Ken Kovel Award, 2001 Teacher of the Year, American Institute of Banking, 1998 Pro Bono Representation of Indigent Clients, U.S. Bankruptcy Court, District of Connecticut, 1996 - 2002 American Jurisprudence Award 1978   Classes/Seminars Taught: Speaker - NACBA 2009 Convention, Chicago, IL Speaker - NACTT 2009 Convention, Boston MA Speaker - NACBA 2008 Workshop, Hilton Head, SC Speaker - NACBA 2008 Convention, Los Angeles, CA Speaker - NACBA 2007 Workshop, Las Vegas, NV Speaker - NACBA 2007 Convention, Philadelphia, PA Adjunct Professor - Bankruptcy, Real Estate, Consumer, and Commercial Law, American Institute of Banking and Teikyo Post University Past/Present Affiliations: National Association of Consumer Bankruptcy Attorneys American Bankruptcy Institute American Institute of Banking, Northwest Region Council City of Waterbury Corporation Counsel - Advisor, 1996 - 2000 Waterbury Bar Association - Chair, Committee on Bankruptcy -1998 Waterbury Credit Bureau, Inc. - Vice President, 1983 - 1985 American, Connecticut, and Waterbury Bar Associations Admitted: Connecticut, 1982 U.S. Federal Court, 1982 Education: Drake University Law School, Des Moines, IA, J.D. - 1980 University of Connecticut, Storrs, CT, B.A. - 1977 Past Positions: Bender & Anderson, Of Counsel, Hamden, Conn. DiPietro, Kantrovitz & Brownstein, P.C., New Haven, Conn. Grady & Riley, Waterbury, Conn.
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