Pre Bankruptcy Recommendations

Like most of life, a bankruptcy is often only as a good as the preparation put into filing.  Below are some of the considerations you will want to take into account prior to filing.

Rough Guide Prior to Filing Bankruptcy

Below are some of the things that we generally recommend.  This can very from case to case and is intended to not be formal legal advice that should be taken without consulting with our firm or another equivalent practice.

Quick Checklist

  1. We recommend that unless you have your checkings/savings account at a bank where you have no other accounts, that you should start a new bank account at a bank where you have no other accounts.  This is to avoid dragnet clauses.
  2. We recommend that you avoid transferring any assets of any kind prior to filing.  Ask us first before you do or if you already did let us know.  A sale for market value is generally fine but you need an explanation for how the proceeds were spent.
  3. We recommend that if possible, you de-activate auto payments and make all payments manually or be prepared to do so and double check on any auto payments you keep in place.
  4. If you own a house, know that filing a bankruptcy will stop future credit reporting (even positively) and may make payments more challenging (some banks won’t send statements or allow you to have an online account).  You can usually resolve this by paying in branch or via mail and checking on the balance every several months (at least once per quarter)
  5. If you own a house that is subject to a COA/HOA, stay current on those dues or get current.  Dues will continue to accrue post petition filing and they can foreclose in rem (meaning as to the property only) on dues that you have received a personal discharge on.
  6. If you own a house but are not currently live in the home, let us know to make sure we can protect your homestead rights.
  7. Some debts are non-dischargeable.   This generally includes family law debts, certain tax debts, student loans (unless a hardship applies or the school is not qualified), and restitution/debts owed to the government.  If any of these apply, speak with us so you understand how they will be treated.
  8. If you have a security clearance, speak with us first regarding special procedures.
  9. If you have made any luxury purchases in the last six months, speak with us first.
  10. If you have a family member who may be passing in the next six months, speak with us regarding this as inheritance is considered an asset of a bankruptcy estate.
  11. If you are expecting a windfall of any kind, let us know.
  12. If you can be a plaintiff or defendant in any case, let us know.

Auto Payments

Bank Accounts

Credit Cards

Credit Report

Fraudulent Transfers



House Reaffirmation Complications

Luxury Purchases


Security Clearances/Military Members