Before you File for Bankruptcy


by McFerran Law, P.S.

Practicing Real Estate Law in Western Washington since 1986

November 16th, 2015

Before Filing Bankruptcy

When you are dealing with serious debt and a bankruptcy seems like the right choice, there are steps that you should begin taking to improve the final outcome of your case. Additionally, there are things that you should make sure to avoid doing so that you don’t fall into a worse situation before moving forward with the case.

Credit cards may seem like an easy option for those who are low on funds. They can be easy to take out and swipe when you want to pay for something, but your bank account won’t allow you to. If you are already faced with debt, you don’t want to continue using them and falling into a worse position. Of course, there are some emergency cases where you may need to, but generally, if you are able to avoid using a credit card, do so. Using credit before you file may also hinder your case since the court may choose to view this as debt you didn’t intend to pay. The best way to know whether or not it is ok to use your credit card is to talk with a bankruptcy attorney about your case specifically. Additionally, it is best to avoid all other forms of debt if possible so that you are not in a more difficult position.

You may owe friends and family debt but wait to pay this back. They may be considered an “insider” which means that the amount paid to them can end up being recovered by a bankruptcy trustee in the event that you paid them within the year of filing. This will only include amounts that are over $600.

You will want to avoid transferring assets at this point since it can prove harmful in your case. This may lead to a denial of discharge or a trustee may be able to recover the fraudulent transfer of assets.

Many people feel as though bending the truth of giving a flat out lie will help their case. There may be information that they don’t want out on the table, but telling the truth is the best choice in the long run. Things can often come out even when you don’t expect, as these cases are often closely scrutinized. If you don’t divulge the information yourself it can lead to consequences and can also put your attorney in a more difficult position.

If you are dealing with debt, work with our team to learn your options. We can work with you in the before, during and after process to improve the chances of your case being successful. Call us to schedule a free one hour bankruptcy consultation. The number to call is 253-284-3838. We offer consultations at all of our offices in Kent, Tacoma, Seattle (Northgate), Everett and Silverdale. Planning ahead can save you aggravation and money.

Richard J. Welt
Attorney at Law
McFerran Law, P.S.
1833 No. 105th Street, Suite 101
Seattle, WA 98133

Our Offices:

3906 So. 74th St
Tacoma, WA 98409

1833 No. 105th St, Ste. 101
Seattle, WA 98133

25028 104th Ave SE
Kent, WA 98031

2520 Colby Ave, Ste. 101
Everett, WA 98201

9633 Levin Road, Ste 101
Silverdale, WA 98383

McFerran Law is a debt relief agency as defined by federal bankruptcy law.

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