What are some of the financial mistakes that I should avoid making while contemplating bankruptcy?

One of the most costly mistakes people make is draining their retirement account in order to make minimum payments on their credit card bills. If filing for bankruptcy is just a matter of time, then there is no reason to drain your retirement accounts. Your credit card balances will be eliminated in bankruptcy and the court cannot touch your retirement assets to satisfy your creditors. Don’t rob Peter just to pay Paul!

Since I am going to file for bankruptcy in a few weeks anyway and I still have money available under my credit line can I continue using my credit card?

Absolutely not! If you continue to make charges and then file for bankruptcy, you can expect the credit card company to file an objection and the court will hold you personally liable for those charges. The moment you begin contemplating bankruptcy, the credit card usage must stop. Also, it is fraudulent to make any transfer of assets from your name to someone else’s name prior to filing for bankruptcy.