Things Not to do Before Filing For Bankruptcy
The COVID-19 pandemic has brought quite a lot of challenges to a lot of people. Ever since it’s outbreak, several people have always had challenges that have affected their lives today. Apart from the many people that have contacted this contagious disease, some have lost their jobs and it has proved hard for them to be back on their feet. Even those that have a source of income are struggling in one way or the other when trying to meet various needs. It is because if this reason that it was really necessary to hold file for bankruptcy. Bankruptcy is a method that people use to ensure that people have financial freedom. It helps to redeem those that have been affected in terms of finances to get the best freedom in their financial status. There are tips that you should however always refrain from doing before you file for any bankruptcy. Here below are some of these tips.
The first thing you are not supposed to do is to transfer your property or the money that you have to your friends or even relatives. So many people normally think that by transferring their properties to somebody else, it helps them by keeping them safe from the bankruptcy proceedings. It is very important to understand that it is a complete fallacy as this may even earn you a case with the court. You should therefore always ensure that such a thing does not happen to you before you file for bankruptcy.
The other important element you should understand is the fact that you should never pay off your creditors before you file for your bankruptcy. At such a time, it is not a secret that the debts that you have accumulated are quite a lot. It will be traced that you paid off certain debts leaving out the others, and yet they all had almost the same weight. You should therefore always ensure that you keep off from paying any of your debts or less it may be used against you. In doing this, your filing process for the bankruptcy will be as smooth as possible.
Lastly, it is very important to refrain from depositing other people’s cash into your bank account. You ought to understand the fact that when you will be filing for your bankruptcy, a lot if your details will be checked. It would therefore be better if you cease from depositing any money that does not belong to you into your bank account. The only money that you are allowed to deposit is the one that is coming from the work that you do or from any other thing that you do to earn money. You should therefore always ensure that you get to refrain from doing that or else it will be used against you. It is always important to ensure that you have a very smooth process of what you do. Filing of bankruptcy will be as easy as possible if you ensure that you do not do the things discussed above.