Find Out What You Cannot Do When You File Bankruptcy In Colorado
While it’s important to know what you can do when you file bankruptcy in Colorado, it’s equally important to know what you cannot do when you file bankruptcy in Colorado.
My job is to help people navigate the Chapter 7 and Chapter 13 bankruptcy process in Colorado.
Here are a few things you should not do before you file bankruptcy in Colorado:
- Don’t repay any money you’ve borrowed from friends or relatives before you file bankruptcy. Wait until after you file before you repay them. In certain situations, the bankruptcy trustee can recover money that you have repaid to friends or relatives in the twelve months before you file. It doesn’t matter if nothing was written down. You have to truthfully disclose whether or not you have repaid anyone. If you lie on your petition or to the trustee, you can have your case dismissed. Or you can go to jail.
- If you repay any other creditors in the 90 days before you file your bankruptcy case, the trustee may be able to go after the creditor you paid. Don’t pay them anything more than the required minimum payment.
- Don’t give any personal belongings of significant value or real estate to anyone before you file unless you get a reasonable value in return. The trustee can get them back from whoever you gave them to, sell them, and distribute the money to your creditors. Remember to disclose anything you sold, gave away, or traded in the two years before you file bankruptcy.
- Don’t use your credit cards in the 90 days before you file. Shred them. Close them. Leave them alone. Once you file, you’re going to have pay your expenses without them. While you’re at it., don’t borrow any money in the 90 before days you file. You could find yourself still on the hook for credit card usage and loans you took out in the 90 days before you file.
- Tell your bankruptcy lawyer if you expect to get an inheritance in the next year. Also tell him if you have filed a lawsuit, or are thinking about filing a lawsuit, against someone because you think they did something wrong and you should be compensated.
- Don’t withdraw any money from your 401(k) or IRA before you file without talking to a bankruptcy attorney. Once you remove that money from your ERISA qualified retirement account, it’s no longer protected from turnover to the bankruptcy court.
- Don’t get married before you file without talking to a bankruptcy lawyer first. As a married couple, you have to disclose both of your incomes, even if your spouse isn’t filing bankruptcy.
- Don’t withhold information from your bankruptcy attorney. You hired her to help you through the bankruptcy process. She can only do that if you are honest with her and answer all of her questions. Once you lie to her, she loses control of your case.
Talk To An Experienced Denver, Colorado Bankruptcy Attorney About What You Cannot Do When You File Bankruptcy In Colorado
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