Avoid These Temptations When Filing for Chapter 7 in Tampa

Filing for Chapter 7 bankruptcy is a difficult decision for anyone, and usually a scary one. Too often, people make rash decisions in an effort to get as much as they can in their case. Word to the wise: before you make any decisions regarding your finances prior to filing, it’s imperative that you consult with a competent Tampa Chapter 7 lawyer.
That said, here are 3 things you don’t want to do before you file:
Don’t try to hide your assets: hiding assets, say by selling a relative a house or a car at far less than market value, is a definite “no-no”, and in some circumstances can even be a crime. Even selling off assets at fair market value can create enough suspicion that it damages your case. If you have any questions about property you want to sell, consult with your attorney before taking any action.
Don’t pay relative or friend debts: this one is a little tricky, but you should avoid suddenly paying debts you owe to relatives or friends until after you file for Chapter 37. This one can actually create legal problems for the friend or relative to whom you owe money. Be sure to discuss the situation with your relative or friend and, of course, with your lawyer.
Don’t incur new debt: it’s tempting to think that this is a time to incur new debt which you hope will be forgiven in your bankruptcy case. Avoid this one at all costs as doing so can actually be viewed as committing fraud. Don’t get new credit cards and begin putting charges on them or get new cards in an effort to secure a lower rate of interest.
It’s true that filing for Chapter 7 can be a frightening and confusing time, but these are precisely the times when you need the help of a competent professional to ensure you don’t make any mistakes you can’t erase.
If you have questions or need additional information, contact us today.