1. Stop using your credit cards.  If you use credit cards within 90 days of filing for bankruptcy, it could appear that you are intentionally using credit knowing you are unable to repay the creditor and this may be considered fraud.  Also, if you make a large purchase, that amount may not be discharged in your bankruptcy.  If viewed as fraudulent, you may be denied a bankruptcy discharge.

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2.  Stop paying your credit cards and unsecured debts.  Paying on your credit cards or unsecured debts could be viewed as preferential payments to creditors drawing objections from other creditors.  Additionally, because the debts will be discharged in a Chapter 7 bankruptcy, any payment is a waste of money.

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3.  Do not accept gifts of cash from anyone.  Cash gifts received by you may be considered income especially if the payments are received regularly or in larger amounts.  If you are just barely qualifying to file under the Means Test, cash gifts may cause you not to qualify.

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4.  Do not accept large item gifts.  Not only may a large or expensive gift qualify as income, it becomes an asset that the bankruptcy may want to take and sell to pay your debts if you do not have sufficient exemptions to protect the property.

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5.  Do not borrow from your retirement account without immediately establishing a repayment plan.  If you make an early withdrawal from your retirement account, the money is considered income unless you have established a regular repayment which would then characterize the withdrawal as a loan.  Additionally, once the funds are withdrawn, they lose their otherwise protected status.

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6.  Do not borrow against your home equity or retirement account to pay bills.  Both your home equity and your retirement accounts are protected in a Chapter 7 Bankruptcy.  Therefore, borrowing against your home equity or retirement account to pay unsecured debts which may be discharged will only be a waste of protected assets and may even appear as preferential treatment of creditors which will cause problems once you file.  Additionally, you will be adding nondischargable debt that, in the longrun, you will not be able to pay which could cause you to lose your home.

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7.  Do not give or lend money to anyone.  Giving or lending money draws suspicion.  If money is lent, the amount is considered an asset that can be taken by the bankruptcy trustee if you have no exemption to protect the amount owed.  If you have given money, the gift could be considered a fraudulent transfer interfering with your ability to receive a Chapter 7 discharge.

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8.  Do not repay loans from family or friends.  Any repayment on a loan received from a friend or family member may be considered as a preferential repayment and will cause problems for you once you file.

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9.  Do not make cash withdrawals.  $20 here and there is not a problem but larger cash withdrawals draw suspicion as there is no record that identifies how the money was used.

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10.  Do not transfer assets.  You are required to disclose property transfers which have occured for the two years prior to filing bankruptcy.  Any large transfers could be perceived as a fraudulent attempt to reduce your assets for the purposes of filing bankruptcy.  Depending upon the circumstances of the transfer, a bankruptcy trustee could use the trustee's "avoidance powers" to have the transfer reversed, your bankruptcy discharge could be denied or you could be criminally charged with fraud.  If you have transferred property, ask your bankruptcy how such a transfer may affect you before you file.

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11.  Do avoid unecessary purchases.  Frequent unecessary or frivolous purchases could interfere with your ability to receive a Chapter 7 discharge.  The bankruptcy trustee may question why you are able to spend so much money on frivolous purchases yet not able to pay your creditors.

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12.  Do open a bank account at a different bank if you owe the bank money.  If you owe money on a personal loan from the bank or on an automobile loan from the bank for an autombile that you intend to relinquish in the bankruptcy, the bank may take or freeze your assets in any account held at that bank upon learning of your bankruptcy.    This is known as a "right to set-off".  A set-off for credit card debt is not allowed but if the credit card is actually a "line of credit" and you have signed a separate security agreement authorizing the sef-off, then a set-off may apply. Credit unions are notorious for this "cross collateralization". It is possible that, even if you do not owe the bank money that it could freeze your account to preserve the money for the bankruptcy trustee but, if the money is protected as exempt, the bankruptcy trustee can assist in unfreezing the account.

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13.  Do keep monthly entertainment, travel and meals out expenditures under $250 per month.  Excessive spending on entertainment, travel and dining out reads as "extra money to pay creditors" to bankruptcy trustees and creditors.  The bankruptcy trustee may question why you are able to spend so much money on luxury items yet not able to pay your creditors.

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14.  Do advise your attorney IMMEDIATELY if there are ANY CHANGES to your income or financial status.  One small change could drastically affect your ability to qualify under the Means Test to file for Chapter 7 bankruptcy.  Also, events like paying off your car, trading in your vehicle on a new vehicle, or selling an item could alter your available exemptions.​​​