Pre-Bankruptcy Instructions: Important Steps Before Filing for Bankruptcy

Before making any financial decisions, contact us first! We are here to guide you through the process and help avoid potential complications.

Key Pre-Bankruptcy Guidelines:

1. No Selling or Buying

• Avoid selling any property or making large purchases within 90 days before filing for bankruptcy.
• Buying luxury items can put your property at risk of being taken during the bankruptcy process.

2. Avoid Borrowing or Cash Advances

• Don’t borrow more money or use credit cards before filing.
• Taking cash advances can lead to delays or other issues.

3. No Family Repayments

• Don’t repay family members before filing. The trustee may take back the payments made to family.

4. Prioritize Payments

• Make payments on secured debts (like car loans) if you want to keep the property.
• If you can’t pay all your bills, consult us on what debts should be prioritized.

5. Credit Card Usage

• Stop using credit cards immediately. Using credit cards before filing could cause delays.

6. Inheritance and Insurance

• If you expect an inheritance within six months of filing, it could be taken in bankruptcy.
• Whole life insurance policies with non-spousal or non-child beneficiaries could also be at risk.

7. Banking Precautions

• Make sure you owe nothing to your bank, as they may freeze or take money from your account.

8. Vehicle Valuations

• Get the retail value of your vehicle from NADA.com. Each individual can exempt up to $3,500 equity in one vehicle. Sometimes you can use a wild-card exemption on your car and your car could be covered for $8500 in equity.

Need Help?
Cameron Bankruptcy Law is here to ensure you make the right financial moves before filing bankruptcy. Following these guidelines will help avoid complications in your case! Reach out to us for more information.