34 things you shouldn't do if you're thinking about a Chapter 7

(list courtesy of the National Association of Bankruptcy Attorneys listserv)

If you are contemplating filing a Chapter 7 bankruptcy, there are certain things that you should not do. If you have any questions about why you should avoid any of the actions listed below, please talk to a bankruptcy attorney.

  1. Don't file if your income is greater than your reasonable expenses.

  2. Don’t use your credit cards.

  3. Don’t take credit card cash advances.

  4. Don’t use convenience checks.

  5. Don’t do balance transfers.

  6. Don’t pay money to family.

  7. Don’t pay money to friends.

  8. Don’t tell a creditor that you intend to pay.

  9. Don’t file if you are about to receive a tax return or inheritance. Discuss the timing with your attorney.

  10. Don’t purchase a home shortly before filing bankruptcy without consulting your attorney.

  11. Don’t give or gift property to anyone.

  12. Don’t pay more than $600 on any past due bill.

  13. Don’t put your money in your kids’ bank accounts.

  14. Don’t transfer property to anyone.

  15. Don’t cash out retirement plans or 401k’s.

  16. Don’t take out a second mortgage.

  17. Don’t gamble.

  18. Don’t hide assets or debts.

  19. Don’t take out payday loans.

  20. Don't write bad checks.

  21. Don’t borrow money.

  22. Don't get married before filing if your future spouse has a high income.

  23. Don’t run up your credit cards in advance of filing bankruptcy.

  24. Don't bank where you owe money. Close the account and reestablish it somewhere else.

  25. Don’t make major financial decisions without talking to your attorney.

  26. Don’t fail to appear at State court hearings, trial or proceedings; coordinate with your attorney.

  27. Don’t misrepresent facts to your attorney.

    WHEN GIVING YOUR FINANCIAL INFORMATION TO YOUR ATTORNEY:

  28. Don’t leave out bank, checking, savings, brokerage, credit union accounts – remember to include any joint accounts, even if you don't take out or put money into the joint account.

  29. Don’t leave assets off of your paperwork.

  30. Don’t fail to tell your attorney about your small business, sole proprietorship, partnership, LLC, LLP, LC, corporation, or hobby.

  31. Don’t omit or “save" a credit card for after your bankruptcy.

  32. Don’t fail to list debts to family, friends, or other insiders.

  33. Don’t forget to tell your attorney about liens (or unpaid judgments) you may have on your home so the liens can be avoided.

  34. Don’t hide from your attorney. Keep her up-to date with your address, phone number and email address.

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