Filing For Chapter 7 Bankruptcy? Things To Avoid Doing
Posted on: 21 January 2020
Share
One of the things you may need to do at some point in life is to file for a Chapter 7 bankruptcy. This can be extremely helpful if you've lost your job or amid a dire financial situation. Getting the assistance you need in discharging several debts can make a huge difference in your life. However, you'll want to know certain things to avoid for optimal results.
1. Paying creditors
If you're filing for this legal status, you'll want to stop paying your creditors. It's vital to make your last payment before you consider filling out the documents.
However, you may want to notify your creditors that you intend to file for Chapter 7 bankruptcy. This is in your best interest and will keep these companies well informed.
2. Don't transfer property
The last thing you'll want to do if you're in this situation is to make any real estate transactions. It's best to avoid even making a transfer of property of any type
This may indicate that you have the assets to help you pay off your debts and could be one of the things that can prevent you from getting this status.
3. Using credit cards
All of the financial activity you do once the bankruptcy has been filed will be closely monitored. This makes it extremely important not to use any of your credit cards.
Continuing to charge things when you want to be eligible for bankruptcy can lessen the potential of getting this legal status. It's a good idea to pay for anything you need in cash only and to put any charging on hold until this process is completed and your debts are totally discharged.
4. Avoid legal confrontation
If you've been thinking of issuing a lawsuit, you'll want to avoid proceeding with this until after the bankruptcy is complete. Keep in mind that bankruptcy is a legal status, and trying to file for this should be the only legal action that you're involved in within a short amount of time.
Working to get back on financial track can happen when you make the right moves. One of the things you'll want to consider strongly is filing for a Chapter 7 bankruptcy to make this happen. Many steps will increase the chances of having success, and some you'll want to avoid. Working with a lawyer that specializes in this area, such as David M. Todaro Co., LPA, can be very helpful for you.