Pre- and Post-Bankruptcy Do's & Dont's

BEFORE YOU FILE CHAPTER 7 OR 13

• DO – Continue making payments on vehicles you intend to keep. (Do this after you have filed for bankruptcy as well.)

• DON'T – Borrow or withdraw from your 401K, IRA, or ERISA qualified savings and retirement plans to pay bills. If you do, you may be liable for penalties and taxes that are not protected by the bankruptcy filing.

• DO – Give "friendly" creditors a security interest in non-exempt property. If you have to borrow money from a friend or relative you could give that creditor a security interest in the property which you own. This will possibly make it less likely that a trustee will take the property.

• DON'T – Borrow money on your home to pay unsecured bills, such as credit card, utility, or medical bills.

• DO – Reduce the amount withheld from your pay for taxes.

• DON'T – Pay $600 or more back to relatives or business associates from whom you have borrowed money.

• DON'T – Put property you own into someone else's name to avoid it being taken by creditors or the trustee. This is considered fraud.

AFTER YOU HAVE FILED CHAPTER 7 OR 13

• DO – Continue making payments on vehicles which you intend to keep. (Do this before filing bankruptcy as well.)

• DON'T – Sell or transfer assets without contacting our office first to discuss the matter.

• DO – Call our office when you get your Notice of Meeting of Creditors.

• DON'T – Be concerned if a few Creditors still attempt to Contact you or send you bills or collection letters after filing.