While Chapter 7 brings relief from financial difficulties you might be finding yourself in, you need to know how to approach the situation in order to reap maximum benefits. Specifically, you have to know what to avoid doing before filing Chapter 7 to ensure your odds of a successful claim are good. Hiring an experienced Chapter 7 bankruptcy lawyer from San Diego will increase your chances, but you should first learn more about what not to do before filing this bankruptcy.

What should I not do before filing Chapter 7?

The first step in preparing for your Chapter 7 bankruptcy claim is to investigate all the actions you should avoid taking prior to starting your process. Doing any of the following is absolutely not advised and can significantly diminish your chances of a successful claim. Take a look at what you should refrain from doing before filing.

Don’t transfer assets

Many individuals think that choosing to transfer their assets to another bank account or attempting to place them under the name of their spouse will protect them. However, this does not work, and such transfers constitute bankruptcy fraud that will make it impossible for you to successfully file Chapter 7.

Here are some examples of such transfers that will surely cause trouble:

  • Changing names on your bank accounts, or taking your name off joint accounts
  • Removing your name from a business
  • Depositing funds into various bank accounts that belong to other people

Don’t favor creditors

You might want to completely pay off several creditors before filing Chapter 7. However, such transactions are strictly prohibited and are considered fraudulent transfers.

You can settle your bills, and you can pay the credit card debt you incurred over the last month. You cannot, on the other hand, make large payments to your “favorite” creditors while refusing to pay others.

Don’t make credit card purchases

Unless you absolutely have to incur additional credit card debt in order to pay for the necessities, for example food, housing, or gas, you should immediately stop using your credit card. Purchasing luxury items before declaring bankruptcy allows creditors to object to your discharges, potentially preventing you from taking advantage of them. `

Don’t deposit large amounts of money

You do not want to deposit any funds, except payments and salaries, into your bank account. For example, refrain from depositing money into the account as a favor to a friend, and don’t conduct any business transactions using your account in case you’re a small business owner.

Don’t sue people

All legal claims you have are assets during your bankruptcy claim, even in case the matters are unresolved. Even the claims you have against others and you still haven’t acted on are part of the bankruptcy process. All this can negatively affect your bankruptcy process, which is why you should never sue people before filing.

Which Chapter 7 bankruptcy lawyers in San Diego should I hire?

There are numerous benefits to filing Chapter 7, especially if you avoid doing certain things before you file. However, for some people Chapter 13 bankruptcy is a more suitable option due to its characteristics, and they may want to find out more about the process of Chapter 13 before settling on their choice of bankruptcy to file. If you find yourself lost and overwhelmed by it all, it’s easy to get help from reputable bankruptcy attorneys.

All you need to do is contact The BK Lawyers and allow Chang & Diamond to handle your case. We are seasoned professionals with plenty of experience handling bankruptcy cases across San Diego. We have the knowledge, the credentials, and the skills necessary to ensure your process is successful. Come for a free consultation, tell us how we can help you, and then visit the San Diego Zoo to catch a break while we handle your claim. Give us a call today!