When planning or filing bankruptcy there are a lot of things going on at once.  Make sure you take some of this instance advice to heart and put it into practice.  With knowledge and planning come security, so calm down and take a minute to learn some of these tips.

A good time to file bankruptcy is right after you’ve received your latest tax return.  This way you can cash the return and put it away.  Otherwise, the court will often garnish or take the return to pay your creditors.  You can use those funds to pay your attorney, buy food, or simply store it in a safe place.

As stated, don’t put money in your bank account. No more than $99 should be left in your checking account because the court can take the funds and order it paid to creditors.  If you are working ideally take your paychecks down to your local Walmart and cash them.  Put the cash in a safe or secured place in your home and keep it low profile until you are through the bankruptcy.  Of course you need to tell your attorney exactly what you are doing.

You have to be honest with the court and you should disclose all details to your attorney.  There are things you can do with the cash that keeps it from being taken.  Buying food, paying certain bills, pre-purchase college classes or whatever else might be legal.  Check with your attorney but it is our opinion that you need to save every bit of money you can for survival after the process.  Better you have your money than the creditors.

Don’t take out loans or add more debt once you know bankruptcy is going to be a part of your future.  This can be construed as abusive by the court and they may deny your claim.  Do not go out and run up credit cards or run up credit related bills.  All of these things are unacceptable.

If a creditor is trying to repossess your car ideally put it in your garage or close friend or family member’s garage to keep it out of the public eye.  Once you file bankruptcy they can’t take the vehicle until the process is done.  If you need the vehicle put it away and deny the claim until the bankruptcy is done. I know this one is hard as the repo company may be banging on your door around the clock. He does have legal grounds to take it if he can get in your driveway or you leave it on the street so ideally don’t put it somewhere else safer.  Once the bankruptcy is filed he will have to leave you alone by law until the process is done.

Make sure you don’t transfer money to a family member to pay off debts prior to the bankruptcy.  You don’t get to choose what debts you will pay and the court can order the money to be returned. The major thing is to consult an attorney to make sure you’re not committing fraud. New law changes that occurred in 2005 have brought about some perhaps unknown new guidelines to be followed. Remember virtually all local attorneys offer free consultations. Be sure to take advantage of this aspect as it’s a great place to get your questions answered and find out the facts. For more preliminary information prior to visiting a lawyer check out this post on chapter 7 bankruptcy information.