If you are considering bankruptcy, you may be wondering what you can do to ensure the process goes smoothly. In this case, working with a bankruptcy lawyer from the Arnold Law Offices can help you take the proper steps towards financial solvency.

Clients in Pell City, AL, have come to trust this firm thanks to their expansive knowledge of the law and personalized approach to your needs. These bankruptcy lawyers can also provide some great common sense tips, such as what to avoid doing if you are filing.

What Not to Do When Filing for Bankruptcy

Pay Off Only Some of Your Debts

In bankruptcy, a preferential transfer occurs when the debtor pays off only certain creditors. While this might seem like a step in the right direction, it can actually trigger a lawsuit by the trustee in an attempt to pay all creditors equally. Not only can this cause delays, it might also end up increasing your debt.

Depositing Anything Other Than Income

Depositing anything other than income to your personal accounts can also derail bankruptcy proceedings. Doing so may result in claims of fraud, especially when a large amount of money is deposited.

File a Lawsuit

Filing a lawsuit during bankruptcy proceedings can result in any money awarded going right to your creditors. Depending on the state where you live, creditors might seize the entire settlement amount or just a portion of it.

Use Credit Cards

Usage of credit cards should be halted immediately upon filing for bankruptcy. Not only can continued use of credit cards give the wrong idea to the bankruptcy court, it can also render paying off debts that much more difficult.

Whether you’d like more information on debt consolidation, need help filing for bankruptcy, or have other legal questions, Arnold Law Offices is poised and ready to help. Visit them online to access their complete listing of legal services. You can also arrange a consultation with a bankruptcy lawyer in Pell City by calling (205) 338-6565 today.