If 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:
- 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.
- 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.
- Don’t charge anything to your credit cards before filing. (It may be perceived as “bad faith” or actual fraud)
- 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.
- Don’t transfer balances from one credit card to another.
- 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.
- 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.
- Don’t tell creditors that you intend to repay them.
- 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.
- Don’t avoid telling your attorney about any business or company or partnership or even any hobby in which you participate.
- Don’t buy a new house or apartment when you are considering bankruptcy (at least not without discussing it with your attorney first).
- 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.
- 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.
- Don’t borrow money from payday loan services.
- 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.
Eugene S. Melchionne, Esq.
27 First Ave.
Waterbury, CT 06710