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Five Things Not
To Do Before
Filing Bankruptcy

Many people are looking back at high utility bills from winter, bills for gift spending over the holidays, or even medical bills from extended illnesses and wondering what to do. Some may be looking for a fresh start by filing bankruptcy.


  1. Do not buy luxury items with your credit cards and expect to file bankruptcy shortly after you incur the charges. It might be tempting to book a cruise with your credit card, or even buy a fancy HD television before you file. You do not want to be in a position to pay back that debt. Some charges may be allowed. Before you use your credit cards, please consult with one of our experienced attorneys who will properly advise you.
  2. Don’t transfer property into your children’s names, your girl/boyfriend’s name, or your Aunt Mary’s. The court-appointed trustee could void the transfer, and the property could be used to pay all of your creditors. Work with one of our experienced attorneys to exempt your property and protect it!
  3. Our friends and family who love us often give us loans or gifts of money during hard times. IT IS NOT a good idea to pay back those loans to family and friends shortly before filing bankruptcy. Monies used to repay friends and family members a year before filing bankruptcy can be recouped by the trustee of your case, which would not be a smart way to treat family and friends who have tried to help.
  4. It is also tempting to make a large payment on a credit card you may wish to keep, such as an airline credit card. However, any payment of over $600 to any one creditor, 90 days before filing, can be recouped by the trustee. One of our skilled attorneys can guide you through the process of appropriate bills to pay, and not pay, prior to bankruptcy.
  5. Do not cash out retirement plans to pay bills. In most cases, these retirement plans are fully protected by bankruptcy laws. Large amounts of cash in your banking account may not be protected. List all of your assets and contact Milavetz Injury Law, P.A., for review by one of our bankruptcy specialists and we will be able to guide you through the process.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

Contact our attorneys today at 763-560-0000 or by filling out a contact form online to schedule a free consultation.

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