What To Do And Not To Do For A Successful Bankruptcy
Bankruptcy can be a real life saver. It will put an end to creditor harassment, pending lawsuits, eviction proceedings, and foreclosures. To ensure that the process goes as smoothly as possible, there are a couple of things that you should keep in mind before and after bankruptcy.
The attorneys at Bello, Reilley, McGrory & DiPippo Attorneys At Law have several years of experience operating within the bankruptcy system. We provide debt relief solutions for clients in King of Prussia and throughout the Philadelphia metro area.
What Not To Do
There are several things that you should not do prior to filing for bankruptcy or during bankruptcy proceedings, especially not before speaking to an experienced bankruptcy attorney. Do not:
- Transfer any assets
- Repay a loan to a family member in anticipation in bankruptcy
- Pay your credit card bills instead of your mortgage
- Allow a creditor to obtain a default judgment against you — consult your attorney as soon as you receive the claim
Taking any of these actions may cause major complications during the course of a bankruptcy. For example, if you repay money owed to a relative instead of a creditor during the priority period, your relative may have to return the payment to a bankruptcy trustee.
What You Should Do
Everyone has the ability to monitor and obtain one free credit report per year from each of the three main credit agencies: TransUnion, Experian, and Equifax. Monitoring your credit, particularly in times of financial difficulty, allows you to prevent your situation from becoming worse.
You should also contact a skilled bankruptcy attorney at Bello, Reilley, McGrory & DiPippo Attorneys At Law as soon as possible to discuss your options.