When it comes to filing for bankruptcy, you need to make sure that you watch your financial choices before you even file the paperwork. The financial choices that you make before you file for bankruptcy can impact your actual case, so you need to be careful about what you do.
1. Stop Using Those Credit Cards
If you know you need to file for bankruptcy, you should not be making big purchases with your credit cards. You shouldn't be purchasing clothing or electronics with your credit cards or taking out cash advances, either. If you are using your credit cards as a means of paying off the same bills every month, that is an acceptable use. What you want to avoid is making big purchases or changing the way you use your credit cards, as it will look like you are just running up debt so that you can get it forgiven. The best choice you can do is stop using your credit card once you know that you want to file for bankruptcy.
2. Be Careful With Your Cash Deposits
Next, you need to be careful with the cash deposits that you make into your bank account. The only deposits you should make into your bank account should be coming from your job or from sources of income that you can trace.
You should not be depositing money from side jobs that you don't report to the IRS. You should not be depositing gift checks that a friend or family member gave you into your bank account. If you run a solo business, you should not be making any business transactions through your personal account.
All your income is going to need to be reported and explained, so be careful with the cash deposits that you make leading up to filing for bankruptcy.
3. Be Careful With Paying Your Bills
Finally, you should be careful about how you pay your bills. If you know you are going to be filing for bankruptcy, you should not be trying to pay off any of your creditors. If you focus your payments more on one creditor and pay them more than you normally would, you are going to want to avoid that. Paying more to a creditor than you had in the past will look like you are giving that creditor preferred treatment, and that could result in trouble for you with your bankruptcy case.
When it comes to filing for bankruptcy, once you decide that is the path you want to take, you are going to want to stop making purchases with your credit cards, be careful with the cash deposits you make, and pay your bills as normal. This will help your bankruptcy case. To learn more, contact your local chapter 7 bankruptcy service today.
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