Whether your mountain of bills is the result of bad luck, an injury or illness, or spending habits that got out of hand, the start of a new year offers the promise of a fresh start. If your debt is insurmountable, this may be the perfect time to break free and file for bankruptcy. But make sure that you do it the right way. Here are our top bankruptcy tips for the new year.

• Don’t purchase luxury items right before filing.

If you spent a ton on Christmas gifts with the idea that you’d be able to discharge all of that debt, you might want to wait a few more months. That’s because any purchases you make with your credit card within 90 days of filing for bankruptcy are unlikely to be included in your list of debts to be discharged. The only exception is purchases made for necessities like food.

• Don’t give assets away to family members or friends before filing.

Knowing that the bankruptcy courts can sell off assets to satisfy creditors, plenty of people make this mistake. When you have items of value and you owe people money, those assets are fair game. If you’re trying to keep them for yourself and think that putting them in other people’s hands will protect them, you’re wrong – and might be accused of fraud.

• Be honest about your assets.

It’s very tempting to be less than forthcoming about how much you earn or own, especially if you are trying to qualify for a Chapter 7 bankruptcy that will discharge all of your debts. Doing so is a mistake, as the means test that you have to pass requires give the bankruptcy trustee access to all of your financial records and most information is so accessible to creditors that it’s hard to hide.  If you don’t qualify for Chapter 7 and have to pay off your debts under Chapter 13, you’ll still be better off than you are today.

• Don’t try going it alone.

Plenty of debtors tell themselves that they can handle filing for bankruptcy without the help of a bankruptcy lawyer. Though it may feel like throwing good money after bad to pay attorneys’ fees, the laws surrounding bankruptcy are extremely complicated and the statistics on filing success make it clear: only about 5% of people who go it alone are successful in having their bankruptcy filings approved.

If you’d like knowledgeable guidance on getting yourself out of debt by filing for bankruptcy, we are here to help. Contact our team today! We wish you and yours a happy and healthy New Year.