Ohio Attorneys Reveal What Not to Do When Filing for Bankruptcy

    COLUMBUS, OH, February 24, 2017 /24-7PressRelease/ -- American household debt has increased by more than 10 percent in the past 10 years, prompting many to find ways to cope with unpaid credit card balances, mortgages and car payments. Attorneys at Ohio bankruptcy firm Fesenmyer Cousino Weinzimmer say that bankruptcy is an important tool for those facing heavy debt.

The firm offers some advice to those considering bankruptcy, specifically addressing what debtors shouldn't do when filing.

"People have many misconceptions about bankruptcy," said Courtney A. Cousino, a partner at the firm. "For example, bankruptcy is often seen in a negative light, but it is truly the best path forward for many people whose debt is outpacing their income. Of course, it is not a license to quickly accumulate more debt before filing, which is another misconception."

The attorneys said that accumulating substantial amounts of new debt right before filing for bankruptcy could lead to the filer's being denied a discharge from that debt. The firm also cautions against quickly paying back debt to friends or family members while ignoring other types of debt, such as credit card debt or car payments.

"A debtor might think that they should pay off debts to family members before filing for bankruptcy," said Thomas M. Fesenmyer, a partner at the firm. "This approach can lead to real problems when filing, and those actions might actually be reversed. It's best to not focus on one type of debt at the expense of others when preparing for bankruptcy."

Debtors attempting to shift their assets can also encounter legal problems. The firm says that filers should be prepared to disclose their assets to the courts and avoid finding shortcuts to protect their holdings.

"It's always best to go into the bankruptcy process in the most transparent manner possible," said Danielle R. Weinzimmer, a partner at the firm. "It's not a good time to try to be clever with courts and creditors. That ends up doing you much more harm than good."

The attorneys said that the best practices are often intuitive - be honest and timely in the bankruptcy process. The system is designed to help consumers and businesses get out of crushing debt, but any attempts to be deceptive or to game the system will likely result in even more problems for debtors.

About Fesenmyer Cousino Weinzimmer:
With three locations in Ohio, located in Columbus, Dayton and Cincinnati, Fesenmyer Cousino Weinzimmer helps their clients find the best path forward for debt relief. Find out more about their services by visiting their new website http://www.fcwlegal.com/, or by calling them at 877-654-LAWS.

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