Bankruptcy Do's and Don'ts

Advice from a Michigan Bankruptcy Lawyer

If your finances are in trouble and you have started looking at ways to get out of debt, you have probably considered filing for bankruptcy. The bankruptcy process involves many steps that a Michigan bankruptcy attorney can explain to ensure you have thorough understanding of the process. There are also some things you should and shouldn't do before filing a bankruptcy petition to make sure that your petition is approved. Here are some basic bankruptcy do's and don'ts:

  • Do not use a credit card to pay your taxes. If you pay your taxes with a credit card, you may not be able to discharge the debt at a later point in time. Even though paying your taxes with a credit card may solve an immediate problem, it can le ad to future financial difficulties.
  • Do not use credit card cash advances to pay another card. The court may not approve the discharging of certain debts when you take money from one credit card to pay another.
  • Don't incur more debts if you are considering bankruptcy. Any debts incurred just prior to a bankruptcy may not be discharged.
  • Don't transfer title to your home, car or other property to a family member or friend. When you file for bankruptcy, the court may consider these types of transfers a type of fraud and deny your petition.
  • Do file your taxes. Even if you are unable to pay the amount of taxes that you owe, filing your returns is extremely important. Tax information will be requested by the court if you decide to file for bankruptcy. Without this data, your debts may not be discharged.
  • Do provide accurate information on your bankruptcy petition. Falsifying data on your bankruptcy petition can get you in serious trouble, and can result in your petition being denied.
  • Do contact a lawyer. A bankruptcy attorney can advise on the best way to proceed if you are considering filing for bankruptcy, and help you avoid mistakes that could result in the denial of your petition.

Legal Representation in Sterling Heights & Warren

My firm, Hensel Law Office, PLLC has over 12 years of experience representing clients in bankruptcy cases throughout Madison Heights, Royal Oak, Sterling Heights, Clinton Township, and Warren. As a Michigan bankruptcy lawyer, I will make sure that you are in compliance with state and federal bankruptcy statutes, and prevent any errors from being made that could jeopardize your petition. Contact my firm for a free initial consultation to find out what to do and what not to do if you are considering bankruptcy.