Do and Don’t when Filing for Bankruptcy

Do’s:

• Continue Payments on Essential Assets: Keep paying for vehicles or properties you want to retain.
• Organize Financial Records: Gather pay stubs, tax returns, and a list of expenses to prepare for filing.
• Consult an Attorney: Seek advice from a Michigan bankruptcy attorney to understand your options and avoid mistakes.

Don’ts:

• Avoid Using Retirement Savings: Don’t withdraw from 401(k) or IRA accounts to pay debts; these funds are usually protected in bankruptcy.

• Don’t Transfer Assets: Transferring property to someone else to shield it from creditors can be considered fraud.

• Don’t Take Out New Loans: Avoid borrowing money to pay off unsecured debts like credit cards or medical bills.

After Filing

Do’s:

• Attend the 341 Meeting: Be prepared to discuss your financial situation with the bankruptcy trustee.
• Complete Required Courses: Finish the debtor education course to qualify for debt discharge.
• Follow Your Repayment Plan (Chapter 13): Stick to the court-approved plan to avoid dismissal of your case.

Don’ts:

• Don’t Ignore Creditor Contact: Notify your attorney if creditors continue to contact you after filing.
• Don’t Sell Assets Without Approval: Consult your attorney before selling or transferring any property during the bankruptcy process.