As an Orlando bankruptcy lawyer, I often find myself advising clients not to do things they were planning on doing before they came in to see me. After all, that’s why they are in my office, to get advice on how to handle their debt issues. Some of the actions they contemplate, if they did carry through with them, would result in disastrous outcomes for their bankruptcy. What follows are 5 quick Do’s and Don’ts for anyone considering filing bankruptcy.

1. DO: Disclose all of your assets and all of your creditors in your Petition

When someone files bankruptcy, they fill out a lot of paperwork known as the bankruptcy petition, which is prepared and filed with the Court by their bankruptcy lawyer. In that document, the Debtor (person filing bankruptcy), must acknowledge all of their assets and their debts. This is the core principal in bankruptcy, that everyone who files bankruptcy must provide full disclosure. Therefore, if you are filing bankruptcy, all of your possessions (no matter who purchased them originally) and all of your creditors must be listed on the petition.

2. DON’T: Contact the Trustee’s office if you have an attorney.

Recently I attended a “brown bag luncheon” (us bankruptcy lawyers aren’t the “wine and dine” type) with the Chapter 13 Trustee. At the luncheon, the Trustee made it very clear that if a client calls her office, only bad things could come of that call. In fact, she advised every Orlando bankruptcy lawyer to go back and tell our clients NOT to call her office. When a client calls in to the Trustee, their file immediately pops up on the screen. The person viewing that screen then looks for any little thing that may have gone unnoticed in the client’s case. Is a Plan payment a little late? Was there a tax refund that previously went uncollected?

3. DO: Keep your bankruptcy lawyer updated about changes in your Income during a Chapter 13 case

When you enter into a Chapter 13 bankruptcy, it can go on for up to 5 years. Think of a Chapter 13 as a partnership between you and your bankruptcy lawyer. To reach the intended successful outcome, each party must perform their duties. One of the obligations of a person filing bankruptcy under Chapter 13 is to ensure their bankruptcy lawyer is aware of any changes in their income, whether an increase, or decrease, during the entire case. While you may be hesitant to let your bankruptcy lawyer know about an income increase, you must keep in mind that it does not always result in an increased plan payment.

4. DON’T: Give away expensive assets you own before you file your case.

This may be the most important DON’T. You must admit, it doesn’t sound like something you should do, does it. Just re-read the statement after “Don’t”… As you see, it doesn’t sound like something you should do because it is not. The bankruptcy Court labels the transferring of property out of your name prior to filing your bankruptcy case FRAUD. Let me repeat, DO NOT remove property from your name prior to filing bankruptcy, no matter which family member or friend tells you it is a good idea.

5. DO: Be honest and Disclose

Disclosure is always important when you are talking about the law. People filing bankruptcy are better off listing everything on their bankruptcy petition, so when it doubt, disclose. If you are uncertain about whether or not something really counts as an asset, it is better to be safe than sorry. In other words, list it. It may be that it is not something important and nothing was lost by your disclosure. However, there is a great deal to lose if the Trustee appointed to your case finds out about something that you didn’t list, and decides that you were trying mislead the court with your non-disclosure. In which case, you could have gotten yourself into a real mess. So, let your bankruptcy lawyer know everything.

While there are many, many more Do’s and Don’ts when filing bankruptcy, these 5 will get you well on your way to a successful bankruptcy case.

Looking for help with filing bankruptcy? Then visit www.khuntergoffpa.com to find the best Orlando bankruptcy lawyer for you.