Bankruptcy Dos and Don'ts for Prospective Clients

👍 Once you have retained our office to file your bankruptcy, do tell creditors you have an attorney and that they should not contact you.  Give them our phone number: 252-937-3027.  This should keep creditors from contacting you until the case is filed.  Once the case is filed, the automatic stay will prohibit them from contacting you anymore.  

👎 Do not sell, transfer, give away, or dispose of any property before filing bankruptcy.  These types of transfers could create “fraudulent transfer” issues in your case.  

👍 Do fully disclose all assets and debts to our office and on your bankruptcy documents. 

👎 Do not leave off any property or debts.  Be sure you have disclosed everything.  The bankruptcy code requires you list all property and all debts, and failure to do so could result in criminal and civil penalties, including jail time. 

👍 Do list all sources of income that you have (wages, Social Security, retirement, child support, food stamps, self-employment, etc.).

👎 Do not leave out any income.  It is very important that you have disclosed all sources of income on your bankruptcy schedules.

👍 Do keep your insurance current for vehicles, homes, etc. 

👎 Do not make any last minute charges, purchases, or cash advances on accounts that are or will be included in your bankruptcy.  These types of charges may result in the creditor filing an objection to discharge, alleging that you made the charges knowing you were going to file bankruptcy. 

👍 Do continue paying typical household bills for services you intend to keep, such as light bills, cable bills, cell phone bills, etc.

👎 Do not borrow or withdraw from your retirement account in the days or weeks leading up to filing bankruptcy, as the funds may lose their exempt status.  If absolutely necessary, contact us first. 

👍 If you will be paying a mortgage or car payment directly (i.e. not inside a Chapter 13 plan), do continue making those payments directly to the creditor.  

👎 Do not fall behind on payments you are supposed to make directly, such as car payments, mortgages, or child support.  If you fall behind, the creditor may file a motion for relief from the automatic stay, and it could also jeopardize you getting your discharge in certain situations.