What You Must Know Before Filing for Bankruptcy

A mighty “to do” list awaits every client potentially filing for bankruptcy – gathering documents, creating expense budgets, and recording income.

Anyone who needs debt relief and considers bankruptcy as a proactive step towards attaining such relief should understand that even more important than the “to do” list is the “not to do” list.

• Not-To-Do Number 1:            Do Not Give Anything Away   
  • A bankruptcy trustee could see you giving property away as a gift, even to family, as a fraudulent conveyance.  The bankruptcy code allows the trustee to recover any property that you gave away or gifted within one year prior to filing bankruptcy.
• Not-To-Do Number 2:            Do Not Repay Debt
  • A bankruptcy trustee could see you repaying a debt as preferential payment, and recover the value of the property from you so that it may be divided among your creditors.

 Transferring any property, cars, cash, or otherwise, may void an exemption or be considered preferential payment.  Before filing bankruptcy you must prepare to file, and before preparing you must know what to do and especially, what not to do.  To protect yourself, your assets, and your family, you should check with competent legal counsel before transferring property or making large payments when considering bankruptcy.

Nashville Bankruptcy Attorney