If you've decided that you need to file bankruptcy then there are definitely some things that you should and should not do. The first thing you should do is schedule an appointment with a bankruptcy attorney to discuss your case specifically, but the following list of items are also of paramount importance.
1. Don't borrow more money from anyone.
2. If you have personal loans from friends and family -- Do not make payments to cover these loans. One creditor (yes, your family and friends will be considered creditors) cannot be preferred over the others prior to filing.
3. Do not get married or divorced right before filing.
4. Don't transfer money or give away your assets in an attempt to hide it. We must report all transfers of property and most likely the bankruptcy trustee will take it back from whoever you gave it to.
5. Don't tell your creditors that you're thinking about filing bankruptcy, they may get the jump on you and escalate collection activities.
6. Do not transfer money to your IRA that isn't consistent with your regular contributions.
7. Do not take money out of your IRA accounts. As long as this money is in your IRA, it is "safe" money and cannot be used to pay creditors. If you take it out of the safety of an IRA account - then the creditors can take it.
8. Don't spend frivolously and rack up more credit card debt, you'll only have to repay that debt in the end.
9. Do not use your credit cards! If you know you are filing bankruptcy, do not use your cards to purchase anything.
10. Don't continue to make payments on your unsecured credit or debt. Credit card debt will usually be discharged so payments toward them is really just money you are throwing away.
