Get The Bankruptcy Advice You Need

If you plan to file bankruptcy, it's important not to make any significant financial transactions without talking to an experienced bankruptcy attorney. Even actions that are well-intended can be interpreted as bankruptcy fraud or abuse by the court.

At Charles J. Schneider, P.C., our lawyers offer a free initial consultation to answer your questions about bankruptcy mistakes. Our law office is conveniently located in Livonia, Michigan, and we serve clients throughout the Detroit metropolitan area.

What Bankruptcy Mistakes Should I Avoid?

The following are some of the common mistakes that people make when they file bankruptcy:

  • Asset transfers: Transferring money and other assets to relatives to avoid losing them to creditors in bankruptcy is considered fraudulent conveyance. You could end up losing the asset and having your case dismissed.
  • Hiding assets: Hiding assets from your lawyer can result in the loss of assets that you otherwise could have kept. We can only protect assets that we know about.
  • Taking money out of retirement savings to pay debts: Taking money out of 401(k) or IRA accounts to pay debts can be a big mistake. Those assets are protected if you file bankruptcy. Withdrawing retirement funds may only put off the inevitable bankruptcy filing and will result in a significant tax issue.
  • Preferential payments: If you owe money to several creditors, do not attempt to pay back relatives, friends or business partners first. Preferential payments are illegal. You can repay debts after they have been discharged in bankruptcy.
  • Making large purchases prior to filing: Do not make large credit card purchases or obtain large cash advances just before you file for bankruptcy. This is considered abuse and may result in your case being dismissed.
  • Filing at the wrong time: Learn more about when to file bankruptcy.
  • Debt consolidation or settlement: Paying thousands of dollars to a debt settlement firm may only help to dig you into a deeper financial hole.

This list is far from exhaustive. Before you do anything, discuss your situation with an experienced bankruptcy lawyer.

Livonia Bankruptcy Lawyer: Avoiding Mistakes

To discuss preparing for bankruptcy with a certified bankruptcy lawyer, call 734-237-1523 or fill out the contact form on this website. We offer evening and weekend appointments.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.