DOS AND DONT’S IN ALABAMA BANKRUPTCY CASES
When you are considering filing bankruptcy in Alabama, there are some things you can do and can’t do in your case to protect yourself.
Things You Should Do
- Do not ignore your financial problems.
- Be honest about all your debts and assets. We need to know all of your financial information. We can’t help you if you do not tell us the truth. Keep us informed.
- Continue making payments on vehicles and homes you intend to keep.
Things You Should Not Do
- Withdraw money from your 401k. Usually this account is exempt in bankruptcy, absent fraud. Early withdrawal will also make you liable for taxes and penalties that are not dischargeable in bankruptcy.
- Buy massive purchases on or take out large cash advances from your credit cards before filing. If the court sees exorbitant purchases or cash advances six months to one year prior to filing, it may consider your petition fraudulent and dismiss your claim. Contact an attorney for accurate answers to any questions or concerns you have.
- Transfer property out of your name. Hiding assets is risky and illegal. Our bankruptcy attorneys can let you know about legal ways to protect your property.
- Take cash advances from one credit card to make payments on another. Once you start juggling credit cards, you are in trouble.
- Repay friends or relatives before filing. You cannot treat friends and family preferentially over your creditors.
- Speak with creditors without your bankruptcy attorney present. After you hire us to file bankruptcy, your lawyer will communicate with your creditors on your behalf.
- Consider bankruptcy an easy way to get rid of all your debts. Not all debt is discharged in bankruptcy, including certain tax debt, student loans and child support payments.
We are here to help you with your bankruptcy case. We can help you stop a foreclosure, repossession, garnishment and/or creditor harassment. Call 256-534-3435 now.