If I Decide To File For Bankruptcy, What Do I Have To Do Before I File?
There is generally not a lot a person needs to do prior to filing for bankruptcy. When I consult with a client I will go over with them the process and the information I need and what proof I generally need to complete the bankruptcy petition and the bankruptcy case. Prior to filing for bankruptcy, you’ll need to complete a pre-filing bankruptcy course. This is generally a half hour phone interview and that’s basically the only step that needs to be done prior to the filing of the bankruptcy.
Should I Sell Things Before Filing Bankruptcy?
It is generally not a good idea to transfer assets prior to bankruptcy. When you get to the creditors meeting the trustee will ask you if you have transferred any assets prior to the filing. This could create a fraudulent transfer situation so I would not advise transferring substantial assets prior to filing.
Can I Load Up On Debt Just Before Filing For Bankruptcy?
It’s not a good idea to use your credit cards excessively prior to filing for bankruptcy. This also could create a fraudulent situation. If the credit cards are needed prior to bankruptcy for ordinary household and living expenses that is generally acceptable.
Should I Pay Back Any Family Or Friends I Owe Before Filing For Bankruptcy?
This is what’s called payments to insiders. The court doesn’t allow payments to insiders prior to the filing of bankruptcy because it’s unfair to the other creditors in the case. One of the trustee’s functions is to make sure all the creditors are treated equally and if you make preferential payments to some creditors while avoiding others this is not allowed by the trustee and under the bankruptcy rules.
When Must I Complete The Pre-Bankruptcy Credit Counseling Course? If I Don’t Get This Done Right Away, Does It Hold Up My Case?
You can’t file your bankruptcy case without doing the pre-filing course. It does have an expiration date on it so I recommend completing the course just before the filing of the case. It doesn’t take very long and it can be completed on the Internet or by telephone in about half an hour.
How Long After Filing Bankruptcy, Will The Creditors Stop Calling?
The creditors should stop contacting you once the case is filed. There’s generally a little lag time between the filing of the case and the receipt of the notices of the bankruptcy but generally, all calls should stop within one or two weeks.
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