Thngs NOT to do before filing BK

[Shrike1070]

What is the name of your state? Colorado

Has anyone here come up with a list of things NOT to do with your finances or your assets, before filing a consumer bankruptcy that may endanger your chances of a successful and debt free discharge?

Just curious...I know that is a broad and somewhat vague question to ask subject to personal and legal interpretation, but I thought I would stir up the pot with that one.

S

 

[Ladynred]

Do NOT transfer ANY property or sell any assets
Do NOT pay any 'insiders' any amount
Do NOT pay any creditor more than $600 during the 90 days prior to your filing
Do NOT use ANY credit cards for the 90 days prior to filing, those charges may not be discharged
Do NOT take any large sums of money out of your bank accounts - the Trustee will want bank statements and will likely want to know where any large cash withdrawls went.
Do NOT take out any cash advances - these can be examined for up to a YEAR prior to filing

If you have not filed your tax returns, then you may be told to do it before your 341 meeting. If you're expecting a refund, the Trustee will likely take it if its a fair sum of money. If you've filed already and gotten your refund, make sure you spend it on NECESSITIES and keep receipts for everything you bought with it.

There are probably more 'don'ts' and certainly more 'do's', but these are the major ones.

 

[bigun]

I've alway believed that the instant that you believe bk may be a viable solution to your problems you should just throw out an anchor on your fiancial life. All of the don'ts that LIR are important. Make no move involving insiders or liquidating assets unless your attorney says its OK.

 

[Shrike1070]

Followups...

Do NOT transfer ANY property or sell any assets:I don't have any real property to transfer, and I think everything I own would be exempt i.e. clunker car, household items, clothes, etc.

Do NOT pay any 'insiders' any amount:
I don't intend on hiding any money or property with friends or family. So I think I'm okay here.

Do NOT pay any creditor more than $600 during the 90 days prior to your filing:Given the above statement, are you only referring to revolving credit creditors, or are you also referring to any student loans or any tax re-payment? And do you mean $600 total between all creditors, or $600 for each creditor within the 3 month period?

Do NOT use ANY credit cards for the 90 days prior to filing, those charges may not be discharged:No problem here as all of them have been charged off at least a year ago. Or are you also referring to not using a Visa debit/ATM card issued by a bank for a checking account?

Do NOT take any large sums of money out of your bank accounts - the Trustee will want bank statements and will likely want to know where any large cash withdrawls went:
Does closing a checking account and living off of the cash from it for the time-being count in the stipulations for the above statement? And how far back would they look at bank statements if requested?

Do NOT take out any cash advances - these can be examined for up to a YEAR prior to filing:
Again no problem here. Haven't been able to use a credit card since December 2003.

If you have not filed your tax returns, then you may be told to do it before your 341 meeting. If you're expecting a refund, the Trustee will likely take it if its a fair sum of money....

I owe this year

 

[bigun]

You're allowed to pay your secured creditors like a mortgage company over $600. Plus things like student loans or court ordered child/spousal support that will survive bk can continue to be paid.

As to closing the bank account. A trustee can ask for anything they please. I've seen request for just the most recent statement and, I've seen 'em ask for a year or more. It just depends to the local preferences in your district. A ;ocal lawyer will tell you what is the norm.
For sure, be able to account for any expenditures {normal living expenses} from the large cash withdrawal.

 

[Ladynred]

The code says that any AGGREGATE amount of $600 to any one creditor.. so it would be a total and that's only on unsecured debts. Secured debts, student loans and taxes have to be paid.

 

[spangler511]

I just filde Chap 7 or date isnt till April 21st. But, I paid 1300.00 to catch up our truck payment so we could keep it and this was out of a 3500.00 tax refund, I used it also to pay to file. My atty did not say this was wrong on our part.