What Not to Do Before Filing CH 13

[ameangreenbe]

Does anyone have a list of things NOT to do before filing in order to make the process smoother? Of course, I know not to make fraudulent transfers!

What other "red flags" can I avoid and in what period do I need to not do these? For example, no purchases over $300 for 90 days before filing.

Thanks!

[tjs1970]

I would be interested in this list.

[AngelinaCat]

Do not use credit cards at all for the 90 days. Do not make any cash transfers in that time period. Do not pay anyone any money back in amounts of $500.00 or more in that time. (Normal range is 600+, but we have a member that has a problem of two 500 payments within a couple month period to a family member.)

That's it for me right now. Good luck! BTW 'Hub and I are Ch7 graduates, but the same guidelines apply.

[DeadManCrawling]

Make sure you have your paperwork in order. This sounds like common sense, but so many people forget to bring SS cards, ID and such. I would bring bank statements, and all the rest, too, in case the attorney or paralegal forgets.

[Flamingo]

Be prepared to explain any and all checks written, deposits made, withdrawals, etc, for a period of one year prior to filing (over a certain amont - usually $1,000 or so) and be prepared to provide copies of all bank or other statements showing such. The same may apply to any charge purchases made during that time over a certain amount. The 90 day rule does not always hold and you may be required to go back six months or more to provide certain information.

[woeisme]

Not red flag things, but general advice:

Do not cut every and all expenses down to the bare minimum, as your expenses set what your disposable income is. If you bare bones everything prior to filing, you have to then live that way for 5 years, so you are just making it that much harder on yourself.

Do not take out 401K loans, or convert other exempt assets into non-exempt assets.

Do not sell property for less than fair market value, especially to insiders.

Do not try to transfer or hide assets.

[lrprn]

Do not sign up with the first lawyer you meet with. Always interview at least 3-4 different experienced bk lawyers before deciding on one to retain.

Do not assume that just because you read about something bad (or good) happening here to another member who filed Ch 13 that the same thing will happen to you too when you file.

If money mismanagement was the root cause of your bankruptcy, do not think of filing bankruptcy as a personal failure. It takes tremendous strength of character to admit you made mistakes and learn from them.