Are creditors starting to harass you for unpaid debts? Starting to think about bankruptcy? Here are some useful dos and don’ts to keep in mind prior to filing:


Dos Don’ts
Do close any checking or savings accounts at banks or credit unions where you also have loans. Don’t take out any secured loans to pay back credit cards or medical bills.
Do give secured loans to friends or family members. Make sure these loans are properly perfected prior to filing. Don’t pay back $600 or more to friends or family members for unsecured loans prior to filing.
Do continue to make payments on home or auto loans that you intend to keep. Don’t pay any money to unsecured creditors prior to filing.
Do continue to contribute to your 401k, especially if there is a match. Don’t take loans out on retirement funds to pay bills. The bills may be dischargeable in bankruptcy!
Do inform your attorney of any friends or family members who have given you loans. Don’t transfer any property into friends or family members prior to filing. The transfer may be avoidable in bankruptcy and can lead to nasty lawsuits!
Do continue to use your credit card to pay for necessities unless you are absolutely positive you are going to file bankruptcy Don’t make any luxury purchases prior to filing.
Do reduce your tax withholdings to reduce the amount of your tax return. Don’t get any cash advances prior to filing.

CMC Law is managed by Charles Clapp, an attorney who works in the Metro Atlanta and North Georgia regions. You can find CMC Law on Google+. Do call my office at 404.585.0040 or contact us if you have any questions!