Many of our clients are tempted to manipulate their property and play fast and loose with their debts in order to get the greatest benefit going into bankruptcy. The problem with these overactive debtors is they don’t realize they can really screw things up! What follows are a few examples of things we have seen over the years that have made us just shake our heads and roll our eyes. PLEASE DON’T:
- Use your credit cards to “stock up on necessities” without first asking your lawyer if it will affect your case.
- Transfer a car to a friend or family member without consulting your attorney.
- Dump non-retirement funds into your retirement account.
- Start depositing your paycheck into someone else’s account because you “don’t know how to handle money.”
- Pay off a vehicle “to protect it.”
- Put off filing your tax returns in order to hang onto the refund.
- Spend a tax refund after the Trustee told you to hang onto it.
- Put off taking your second online counseling course and risk not getting a discharge of your debts.
- Withdraw money from your bank account right before the filing date without telling your attorney because you are sure you’ll “need it for future expenses.”
- Fail to disclose all of your debts in order to hang onto a cherished credit card.
- “Forget” to list your personal injury case.
- Wait until the Friday before your sheriff sale to make an initial contact with a bankruptcy attorney to stop the sale.
Most of the above actions taken by our clients did not spring from a dark criminal past and the thrill of skirting the law. Often, they were mistakes made on the advice of a well-meaning friend, instead of in consultation with their lawyer. Unfortunately, many of these clients shot themselves in the foot. We could have protected them – had they just told us what they were going to do.