Pre-Filing Mistakes
Running up credit cards before filing: Purchases of $725+ in luxury goods within 90 days of filing, or cash advances of $1,000+ within 70 days, are presumed non-dischargeable. Some filers assume "I'm filing anyway" and go on a spending spree -- this can result in those debts surviving the bankruptcy.
Paying "favorite" creditors: Paying family members or friends more than $600 in the 12 months before filing (or any creditor more than $7,575 in the 90 days before filing) can be clawed back by the trustee as a "preference." Time your filing to avoid preference issues.
Transferring property: Moving assets to family members, selling property below value, or retitling vehicles within 2 years of filing is scrutinized as a fraudulent transfer. The trustee can void these transactions.
Filing Mistakes
Choosing the wrong chapter: Filing Chapter 13 when you qualify for Chapter 7 wastes 3-5 years. Filing Chapter 7 when you have non-exempt assets risks losing them. Get proper advice before choosing.
Incomplete schedules: Forgetting to list a bank account, a creditor, or a prior address can trigger complications. The trustee reviews everything carefully.
Bad timing: Filing right before a tax refund, bonus, inheritance, or personal injury settlement can put those funds at risk. Timing matters.
Post-Filing Mistakes
Not completing required courses: Missing the financial management course prevents discharge. Take it promptly.
Taking on new debt: In Chapter 13, new credit without court approval can jeopardize your plan. In Chapter 7, new debt during the case is not discharged.
Not attending the 341 meeting: Missing your 341 meeting without rescheduling results in case dismissal.
Not opening mail from the court: Court notices contain deadlines. Missing a deadline can result in denial of discharge or dismissal.
Frequently Asked Questions
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Last updated: April 2026. Not legal advice.
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