40 Dos and don’ts for bankruptcy filers in 2015

Have you finally had enough of financial problems and are mentally prepared to file bankruptcy? Do you really want to make a fresh start in this new financial year? If yes, then make sure you check out our 40 bankruptcy dos and don’ts for 2015. I’m sure it’ll help you discharge your debts smoothly.

Dos

1. Check out the bankruptcy laws and make sure you follow them. Courts won’t tolerate any kind of abuse.
2. Be honest when you’re filing your bankruptcy petition. Have the guts to reveal your assets and debts.
3. Consult a bankruptcy attorney and discuss your case in details.
4. Give all the financial papers to your bankruptcy attorney and be truthful to him.
5. Look for other alternatives to bankruptcy. May be you can pay back your creditors through debt settlement and debt management.
6. Behave well in creditors meeting and answer all the trustee’s questions properly.
7. Follow bankruptcy trustee’s advice properly.
8. Save all your financial papers. This would include your income tax returns, pay stubs, debt collection letters, legal papers, etc.
9. Make timely payments on the loans for which you want to retain the security.
10. Inform your attorney if any of your creditors violate bankruptcy laws and contact you.
11. Keep your bankruptcy related papers for at least 10 years.
12. Keep your houses and cars insured.
13. Stop automatic debits for all the accounts you don’t intend to keep.
14. Inform your attorney about the cases filed against you and wage garnishments.
15. Notify your attorney if you’re going to receive any property as per a divorce settlement.
16. Keep a credit card with zero balance with you.
17. Do list the debts you have incurred from your friends and family.
18. If you owe alimony, then do inform that to your attorney.
19. If you’re a federal employee, then inform the officer in charge that you’ve filed bankruptcy. It’ll help you avoid security clearance issue.

Don’ts

1. Take out a new loan from friends.
2. Don’t make friendships with payday lenders.
3. Don’t indulge into gambling.
4. Don’t twist the financial facts in front of the court.
5. Don’t pay above $600 on any delinquent debt.
6. Don’t shop using your credit cards.
7. Don’t give money to friends or family members.
8. Don’t go for bankruptcy if you’re likely to receive a huge tax refund.
9. Don’t forget to inform your attorney about your small business.
10. Don’t liquidate your retirement saving accounts.
11. Don’t interact with creditors.
12. Don’t transfer your money to kids’ bank accounts.
13. Don’t permit anyone to transfer property into your name.
14. Don’t make advance payments on your secured debts.
15. Don’t apply for a second mortgage to repay debts.
16. Don’t think that all your debts will be discharged through bankruptcy.
17. Don’t incur too much debts before filing bankruptcy.
18. Don’t forget to list your car in bankruptcy.
19. Don’t deposit any money into your bank account that you have received other than your salary.
20. Don’t feel proud and inform everyone that you’ve filed bankruptcy.
21. Unless you’re confident of passing Bruner Test, don’t file for bankruptcy to discharge student loan debts.

Do you have any other suggestions? Do share it with us.