Three Things to Avoid Before Filing for Bankruptcy
If you are considering filing for bankruptcy, you need to fully prepare for the many obstacles that can arise during the process. Failing to sufficiently prepare or taking incorrect steps during the bankruptcy process has the potential to significantly jeopardize your future. So that the bankruptcy process can continue as smoothly as possible, this article has been created to inform an individual who is planning for bankruptcy about various things that must be avoided before filing for either Chapter 7 or Chapter 13 bankruptcy. Error #1: Treating Family Members Differently Than Other Debtors Many individuals who have significant debt and who must ultimately file for bankruptcy believe that it is permissible to treat family members more preferentially than other debtors. This type of activity is not allowed, however. A bankruptcy trustee is able to reclaim any amount that a person repays to a family members within two years of filing for bankruptcy. As a result, individuals should treat family members like any other person to whom the individual owes money and wait to repay them. After the bankruptcy process is over, an individual will be able to pay back anyone that he or she chooses. Error #2: Not Appearing at [...]