Posted On: April 28, 2010
Jacksonville Bankruptcy Attorney Says What NOT To Do Before Filing Bankruptcy
If you are getting ready to file Chapter 7 or Chapter 13 bankruptcy in Florida, you have likely secured the advice of a Florida bankruptcy attorney – advice that should cover not only what to do before filing bankruptcy, but what NOT to do:Credit Card Use. If you are filing for bankruptcy, you need to know that any debt over $500 that is incurred 90 days prior to your bankruptcy filing are presumed to be non-dischargeable. In addition, any cash advances over $750 that are made 70 days prior to filing also fall into the non-dischargeable category.
Retirement Accounts. You may be thinking of cashing out your retirement accounts prior to filing bankruptcy. Big mistake. Retirement accounts are usually exempt from a bankruptcy filing, which means you will only be hurting yourself.
Property Ownership. Transferring the ownership of property will not protect it from bankruptcy, and will probably get you in hot water with the bankruptcy trustee to boot. The trustee can undo any property transfer that occurred during the two years prior to filing bankruptcy.
Family Loans. You cannot pay off any loans made to you by family members prior to filing for bankruptcy. If you do so within one year prior to your filing, the money will be reclaimed and added to the bankruptcy estate.
If you need help navigating the intricacies of filing Florida bankruptcy, contact our Jacksonville, Florida bankruptcy law firm.
Greg Gilbert
Keith Maynard
