Many people takes certain actions before filing for bankruptcy believing they are helping themselves when they are often making their bankruptcy case worse off before they have even began. Before you pay anything off, transfer and funds, or do anything with your finances to try and avoid bankruptcy rules, speak with a Utah Bankruptcy Attorney at Salcido Law Firm first. We can help you avoid huge problems in your eventual bankruptcy case. Here are some common mistakes you should avoid prior to filing for bankruptcy in Utah:
- If you are already insolvent, not able to meet your monthly bills, and not getting by, do not go out and incur more debt. Especially avoid title loans and hiking up those credit cards. Such transactions can eventually be considered fraudulent if incurred right before you file for bankruptcy. If you can, file for bankruptcy rather then just loading up your debt with the idea that you can discharge it.
- Just as we mentioned above with not incurring credit cards and title loans, also do not go out and pull all your equity out of your home. In Utah, you may be entitled to maintain all or part of the equity in your home through a bankruptcy.
- One thing that will kill your bankruptcy case is if you pay off friends, relatives, or business partners prior to filing for bankruptcy. This could lead to another fraudulent transfer issue and will no doubt put a bad taste in the trustee’s mouth and potentially the judge. Some people transfer assets to friends and then try and buy them back after the bankruptcy. This is almost the very definition of a fraudulent transfer. The trustee’s office have seen everything before.
- Finally, don’t transfer funds out of any retirement accounts. Utah rules allow parties often to keep retirement funds in place through a bankruptcy so transferring your retirement may lead to creditors having claims over such funds. Don’t touch your retirement at all unless directed by your Salt Lake City Bankruptcy Attorney.
Bankruptcy Law Firm in Salt Lake
We are a Bankruptcy Law Firm in Salt Lake that can help you avoid all of the common mistakes mentioned above. We provide free consultations so call us now to get the info and direction you need go into bankruptcy with your best foot forward.