• Still having deposits in the banks to which you have debts.
Keep in mind that the banks-cum-creditors have the right to offset your debts with your deposits in their coffers; the deposits can be in the form of cash in checking and savings accounts as well as certificates of deposit. You should then move your accounts to other banks where you don’t have debts before filing for bankruptcy, a move that most bankruptcy lawyers will recommend.
• Lying about who you made payments on debts prior to filing for bankruptcy
You should tell the truth about who you have made payments on debts within 90 days before filing for bankruptcy; in the case of debts to family members, it should be one year before the filing. When you lie about these payments to the bankruptcy trustee (i.e., you have actually made payments), you have likely committed 3 federal crimes, at least.
Plus, you are also putting your creditors at risk for restitution of the payments you made to them. For example, if you paid Uncle Bob the $10,000 you owe him 9 months ago before you filed for bankruptcy and you lied about it to the bankruptcy trustee, Uncle Bob will be sued by the bankruptcy trustee for return of the money – and your family relations will likely not be the same again.
The bottom line: You may think that you are saving money when you skip on the lawyer during bankruptcy filing. But you are actually getting into more trouble than you expected without the legal assistance.