Filing for bankruptcy is a complex legal process with far-reaching implications. It’s crucial to understand that the bankruptcy court’s scrutiny of your financial affairs can extend back significantly, often up to a year or more before your actual filing date. As such, this means that any financial transactions, transfers, or decisions made during this period can impact your bankruptcy case. If you’re considering filing for bankruptcy, it’s imperative to be mindful of your financial activities well in advance to protect your interests. By taking the right steps and avoiding common mistakes, you can maximize your chances of a favorable outcome and a fresh financial start. Please continue reading as we explore what you should avoid doing before you file and the importance of working with our adept Gillette Bankruptcy Lawyers.
Is There Anything I Should Avoid Before Filing for Bankruptcy in Wyoming?
When you’re preparing to file for bankruptcy in Wyoming, there are several crucial steps to take and potential pitfalls to avoid to ensure a smooth and successful process. These actions can significantly impact your financial future and the outcome of your bankruptcy case.
Generally, one of the most common mistakes individuals make is intentionally increasing their credit card balances right before filing. Running up credit card debt by making large purchases before filing can be considered fraudulent and jeopardize your case. It’s important to note that all purchases made within 90 days of filing will be scrutinized. You should avoid making purchases that don’t reflect your basic necessities.
You should also refrain from concealing assets. While it may be tempting to transfer property to friends or family members to protect it from bankruptcy, this is illegal. Although selling assets to cover necessary expenses like rent and groceries may be necessary, maintaining a record of these transactions is crucial. Your trustee will investigate recent transactions to ensure you’re not engaging in fraudulent activity, so keeping a paper trail is essential.
Furthermore, you should avoid paying off certain creditors while ignoring others. This may be considered preferential treatment and transactions may be undone by the bankruptcy court.
Should I Consult a Lawyer?
While it’s possible to file for bankruptcy without a lawyer, it’s strongly discouraged. Bankruptcy law is complex and those unfamiliar with the process are easily prone to mistakes. Even a small error in your filing could have significant consequences. Depending on your financial situation, a Gillette bankruptcy lawyer can help you explore your options and determine the best course of action.
At 307 Bankruptcy, we are prepared to guide you through the intricacies of this process and ensure you maximize your benefits. Connect with our firm today to learn more about what we can do for you during these difficult times.
