What to Avoid before Filing Bankruptcy?
There are many actions a person thinking about bankruptcy should avoid. The most obvious is to not incur new debt. Buying a new vehicle, using your credit cards prior to filing bankruptcy, getting voluntary medical procedures like plastic surgery, and taking out payday loans greater than $825 with the intent to file bankruptcy is fraud and can be punishable by jail and/or a fine. It is very important to not incur new debt prior to filing for bankruptcy.
An important financial transaction to think about is paying family members back money the year prior to filing bankruptcy.There is a one-year look-back period for what is called an insider, aka family member. If you have paid back any loans to family members in the year prior to filing, it is important you disclose this to your bankruptcy attorney.
This doesn't include borrowing money and then paying your family back within a month. Instead, this includes ongoing payments to family to pay back a loan. You may have to wait to file for bankruptcy until the one-year look-back period has ended or the money paid back to family is insignificant.
If you owe money to the bank where you have your checking and savings accounts at, it is recommended that you close your bank accounts and go to another bank. You do not have to tell them you are filing bankruptcy. This is recommended especially if you bank at a credit union. Credit unions can have liens on your bank accounts, and they can freeze the accounts. It is easier and will cause less stress to go to another bank.
To learn more about what you should do before filing bankruptcy and to find out if bankruptcy is the best solution for you, contact the knowledgeable Seattle, WA bankruptcy attorneys at the Law Offices of Jason S. Newcombe. Call us or request an appointment today.
Client Reviews
★★★★★
Great service and follow up. Its a scary thing when you need a lawyer but Jason and his team make it less so. Very happy with our outcome. Scott Thibeault
★★★★★
"I can't say enough great things about Jason Newcombe Law Office. I am retired military and I highly recommend Jason Newcombe Law Office. I reached out to Jason's office after sitting for hours reviewing multiple Domestic Violence Law Offices in King County. He responded before that day was over. I spoke with Jason's both in-person and by phone; felt very comfortable with his years of experience and straight talk. He took on my case, took me through the process with sound advice. The Attorney Erin Lane who accompanied me with my court appearances; can't praise and thank her enough for her time, selflessness and educational information prior to each court appearance. She made a really daunting task for me less fearful, given such grim circumstances. I am forever grateful for Jason and the Team of Attorneys." Tommy Harville
★★★★★
"I cannot thank Mr. Newcombe and his staff enough. They are awesome. When I first contacted his offices, I didn't know what to do. I was overwhelmed and confused. He did an amazing job, I highly recommend him! I had two cases, and he got both of them dismissed. If you are in trouble, do yourself a favor, give him a call. " David
★★★★★
"I had Mr. Newcombe's firm handle my ticket and I greatly appreciate their assistance. It was handle easily and with good communication from the associates. If you need assistance with some legal matters then I would refer you to them. " Marvin
★★★★★
"Jason Newcombe and his Associate's are all top notch individuals who will fight tooth and nail for you and go the distance to ensure that you receive the best outcome possible on your case. I would not be where I am today if not for the Law offices of Jason Newcombe. " Eric Brandt