Why You Should Not Repay Debts Before Filing Bankruptcy

Why pay off a credit card or other debts before you file bankruptcy? This would seem to be a counter-intuitive thing to do.  After all, you're filing bankruptcy presumably because you need to eliminate debts. But many debtors choose to pay off some of their creditors right before filing bankruptcy. Many think that by paying off a credit card before filing bankruptcy, they will continue to be able to use that card after bankruptcy and that it will not be [...]

2021-07-26T11:49:43-07:00August 17th, 2015|

Paying Relatives Before Bankruptcy Is A “No-No” Why You Should Wait

There can be serious consequences for repaying relatives before filing a bankruptcy. If you repay your relatives before filing bankruptcy, they may be forced to return that money to the bankruptcy trustee. Timing is everything, so they say, in comedy and believe it or not, in bankruptcy. Many who get down on their luck borrow from family and friends in order to survive and, often, to attempt to stay current on their debts. While the goal is laudable, this path [...]

2021-08-15T16:01:41-07:00November 21st, 2013|
Go to Top