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What are the Things That Should be Done or don’t do When Filing Bankruptcy

What Should be Done

  • Be honest and up front with the information on the bankruptcy petition. List everything even if it embarrasses you. Your attorney should know everything about your financial position. If there is a creditor not listed in the petition, then you may not receive a discharge from that creditor.
  • If anything changes, please keep your information current with our firm such as your mailing address, e-mail, and cell phone number.
  • Think about increasing your 401k contribution if you are filing for chapter 13 and you have additional income.
  • Make sure that you file your tax returns on time. If you believe that you will owe a lot of taxes to the IRS, it is important that you file on time. You will have a bigger problem by not filing your tax returns on a timely basis.
  • Make sure that you stay current on your payments for collateralized loans which you want to keep the collateral such as a car and house. If you want to keep your car and house, make sure that you are current on all the payments. Please inform the firm if you are not current on any of these payments.
  • You want to take the bankruptcy court very seriously. You want to avoid the type of behavior for your financial decisions that the creditors can suspect you are acting in bad faith.
  • It is in your best interest to seek an attorney before you file any documents with the bankruptcy court. You can learn your options and rights under the US bankruptcy rules. You can call the firm and ask any questions that you may have.

What Should not be Done

  • Do not lie when signing the bankruptcy petition under the penalty of perjury.
  • Do not expect your lawyer to aid you to commit fraud before the Bankruptcy Court and your credit. It will not happen.
  • Do not tell your lawyer that certain personal property which you do not own, but you do own them.
  • Do not presume that the bankruptcy will discharge all your debts which is not true. There are some tax liabilities which cannot be discharged. In most instances, all tax liability accrued in the last three years cannot be discharged.
  • Do not wait to buy a vehicle after filing. If you believe that you need a more reliable vehicle, you should take care of that before filing for bankruptcy. If you need more information on that, please contact a lawyer.
  • Do not misrepresent facts to your lawyer. We are here to help you through this ordeal.
  • You do not want to get married to a high-income spouse before filing bankruptcy.
  • You should not transfer any funds to your children’s bank accounts. If they have you as a co-signer and are subject to the review as if it is your bank accounts.
  • Do not file if you about to receive an inheritance or tax refund. You should discuss the timing of filing with your attorney.
  • Do not borrow, cash out, or withdraw from your IRA, 401K, or ERISA qualified savings and retirement plans to pay bills. Suppose you do you can be liable for taxes and penalties that are not protected by filing bankruptcy.
  • Do not take any cash advances from credit cars before filing for bankruptcy. The court may rule that you are acting in bad faith and may not permit you to discharge your debts.
  • Do not buy very expensive items that can be considered luxury items. If you purchased a luxury items within 70 days prior to filing of bankruptcy, the court may not discharge the debt.
  • Do not charge up your credit card debt prior to filing bankruptcy. The court may see this as way to take advantage of the system to your benefit.
  • Do not try to sell your property for less that its actual value.
  • Do not pay your unsecured loans balance early such as credit cards, medical bills, or personal loans.
  • Do not pay your secured loans balance early such as car and house payment.
  • Do not use a home equity loan to pay off your credit card balance. In some cases, many debtors are permitted to keep their home, but must pay the mortgage attached to their home.
  • Do not transfer any property to a relative within one year filing your bankruptcy case. The bankruptcy trustee can go back 5 years from the date of filing if it was done for fraudulent purpose.
  • Do not pay your friends or relative before the creditor as well as transferring your property into their names. If so, the trustee has the ability to sue them for creditors to pay creditors back.

As your Frederick Bankruptcy Chapter 7 and Chapter 13 Attorney where a debtor needs to take the necessary steps for bankruptcy protection, the Law Firm is here to serve Frederick, Montgomery, Washington, and Carroll Counties as well as the remaining Maryland area. The Firm would like to be your Bankruptcy Chapter 7 and Chapter 13 Lawyer where a debtor needs to take the necessary steps for bankruptcy protection.

Client Reviews

Very courteous when I inquired about representation.

Cessaly D. Hutchinson

I was recently involved in an automobile accident which resulted in my car being declared a total loss. In addition, I spent some time receiving medical care. Following an attempt to seek compensation from the responsible party’s insurance company, I realized that I needed to obtain legal help to...


Helped me fight some bogus case that md didn't have jurisdiction over and he's very friendly and approachable oh and did I mention affordable? Best lawyer I've met in a long time!!!!


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