Many Florida residents who are struggling financially come to realize that filing for bankruptcy will provide them with the clean slate they need in order to rebuild their financial lives. However, in the weeks and months prior to filing, there are certain things you should not be doing. Many people make innocent mistakes that they think will help their financial situations, but could actually get their Chapter 7 bankruptcy cases dismissed.
Some Florida residents might make a last ditch attempt to clear up some debt by taking out a new credit card for a balance transfer or to pay monthly expenses. You should not transfer, trade-in or sell any property prior to filing for bankruptcy or while the case is open. Unfortunately, these actions create the appearance that the filer may be committing fraud.
It may seem contrary to responsible adult behavior, but you should also not be making any payments on debt that is considered unsecured, such as credit cards. Again, this will raise red flags with the court and the trustee assigned to your case. The only debts you should be paying prior to or during the bankruptcy are those attached to the secured property that you want to keep after the proceedings, such as your car or home.
There are other actions that you will need to take, but these are the most common mistakes that Florida residents make prior to consulting with an attorney regarding filing for Chapter 7 bankruptcy. If you plan to file, you will most likely have many questions. Before you do something that could potentially jeopardize your chances of gaining a fresh financial start, it’s best to seek advice and assistance in achieving your goals.