Filing for bankruptcy is rarely easy. However, there are certain actions you can avoid taking to ensure a smoother process. In Batavia, NY, Daniel R. McComb, Attorney at Law, assists clients who are faced with complex legal concepts just like this. Here he discusses some common faux pas people make, and how sidestepping these mistakes helps to ensure a favorable outcome.

What to Avoid When Filing for Bankruptcy

Pay Off Only Some Creditors

While some believe that paying off certain debts can improve their bankruptcy case, this is false. In fact, you may be held legally accountable for doing so, as giving preferential treatment to specific creditors can result in a countersuit against you by the trustee.

Deposit Anything Other Than Income Into Bank Accounts

Extra sources of money, such as gifts from friends or family, should not be deposited into your bank account during bankruptcy proceedings. Additionally, it’s crucial that you keep business and personal transactions isolated to prevent allegations of fraud.

Use Credit Cards

In virtually all cases, credit cards should not be used while bankruptcy is in progress. This is especially true if you are using them to purchase luxury items that are not applicable to basic needs.

Transfer Assets

Dispersing assets to others in an attempt to keep them safe from creditors is a huge misstep when filing for bankruptcy. You may be able to keep most of your assets depending on the specifics of your case, and dispersing property and money could be construed as fraud, which will incur harsh penalties.

File a Lawsuit

You should also refrain from filing any lawsuits while you are going through bankruptcy. If your suit is successful, you run the risk of any compensation awarded being included in your listed assets. While laws vary from state to state, you could lose all or some of your settlement.

In Batavia, Daniel R. McComb, Attorney at Law, offers solid legal guidance on a wide range of issues, including those related to debt relief and bankruptcy. Call (585) 343-2250 today to schedule your consultation with an accomplished attorney, and visit the firm online for more information on bankruptcy law.