Let Geri Lyons Chase's experience work for you

Financial actions to avoid when filing for bankruptcy

On Behalf of | Jun 13, 2023 | Bankruptcy Law

Preparing to pursue relief from the trials of debt can be a stressful process and some might not know how the decision they make during this time could affect their situations. Individuals in Maryland who are preparing to file for Chapter 7 bankruptcy may be unaware that there could be certain financial actions that might prove detrimental to the outcome of their cases. Knowing what types of actions to avoid could be integral to staving off risks and protecting one’s interests during every stage of the bankruptcy process. 

Actions to avoid 

Experts indicate that one example of an action to avoid when filing for Chapter 7 bankruptcy could involve making changes to spending habits. For instance, issues such as sudden increases in spending or expensive purchases might be viewed as acts of bad faith. In some cases, such actions could lead to the dismissal of a bankruptcy case, or even prompt allegations of fraudulent activity, and avoiding such concerns could prove vital to safeguarding one’s interests. 

Attempting to transfer or conceal assets may also be ill-advised, as this could trigger dire repercussions. Experts also suggest that it might be best to use caution with credit cards during this time, as continued use of similar accounts may prove detrimental at times. These may only be a few examples of actions to avoid when preparing to pursue relief via bankruptcy and seeking advice on every factor to address in this regard may help a person better prepare to navigate this process. 

Preparing to file for bankruptcy 

Preparing to file for bankruptcy can be a stressful and complex process and individuals who face dire financial straits might benefit from knowing this isn’t something they have to handle alone. By speaking with an experienced attorney, a person in Maryland could obtain much-needed advice on every aspect to address along the way, including insight on actions to avoid during this process. Seeking such advice could help place a person in a better position to pursue much-needed debt relief via bankruptcy and begin working toward building a healthier financial future.