Perhaps you’ve found yourself in a difficult financial situation caused by high medical bills and loss of income, or a recent divorce. Your debts are piling up, and there’s simply not enough money to pay your creditors what you owe them. If you have come to the conclusion that your only option is filing for bankruptcy to eliminate your debts, be very careful. There are some detrimental financial moves that can hurt your bankruptcy case. It’s important that you avoid these mistakes so that your bankruptcy filing is a smoother process, rather than one fraught with challenges from your creditors, or the bankruptcy trustee.
Transferring Property or Money
People often believe that if they transfer assets, such as houses, cars and cash to relatives or others that those assets will be safe from the bankruptcy proceedings. This is a complete fallacy, and in fact, transferring assets does little to protect your assets. Worse yet, these attempts can be construed as fraudulent by the court, even if you had no intention of concealing the assets.