Uncertain economic times have led to increased household financial difficulties. Inflation and hangover from the COVID-19 pandemic have placed more people in financial jeopardy. As the economy teeters on the edge of recession, we expect there to be more bankruptcy filings in 2023.
If you find yourself in financial trouble, bankruptcy may be your best option. However, your actions before that point may come back to haunt you. In order to give yourself the best chance for a fresh start, you should begin to plan now. Planning also means that you should not do certain things that will cause you trouble in bankruptcy court.
One of the things that can get in the way of your bankruptcy filing is potential fraud allegations. If you spend a large amount of money on credit in the months before opening your case, creditors may claim that you committed presumptive fraud. Then, your debt may not be discharged during bankruptcy. In general, you should avoid any large financial moves, such as taking new credit or asset transfers. A bankruptcy court judge may disallow transfers that you made right before filing.
You should also consult with an attorney to learn what else may be forbidden in the days before bankruptcy or could harm your potential bankruptcy case. A bankruptcy court believes in equity, and that includes fairness to your creditor. A bankruptcy case is not a blank check, and a court will stringently enforce its rules. In general, getting legal advice for your bankruptcy can put you in a better position.
The Harnage Law Firm can give you timely advice if you are in financial difficulty and considering bankruptcy. To speak with an attorney, you can send us a message online or call us today at 321.549.7886.