The Dos And Don'ts Of Bankruptcy

Are you considering bankruptcy? There are important things you should know before taking that first step. Specifically, there are things you should and should not do prior to filing for bankruptcy.

Salt Lake City Bankruptcy Tips — Advice For Utah Individuals

Gregersen Law can lead you in the right direction and help you prepare for a major step toward financial freedom. During your free consultation, we will discuss bankruptcy do's and don'ts and explore options that will be most useful for your situation.

Free consultation: Please complete our online contact form to schedule a no-cost consultation at our Salt Lake City law office.

Bankruptcy Do's:

  • Do be open and honest with your attorney — We handle all personal information matters with confidentiality and privacy. Be sure to tell us everything so we can file your bankruptcy petition accurately.
  • Do continue making payments on property you wish to keep— If you are in default, your creditors can repossess the vehicle or begin foreclosure on your home. We can help even up to the last moment, but it is best to avoid it altogether.
  • Do consider adjusting your tax withholding status — The goal is to get close to no refund. If you get a refund, it is considered an asset in Chapter 7 or could affect your Chapter 13 plan.

Bankruptcy Don'ts:

  • Don't use your credit cards — Once you decide to file bankruptcy, do not incur additional debt that you cannot pay. In some cases, that debt may not be discharged. You should not use your credit cards within 90 days of filing.
  • Don't hide your property — Even though you may fear losing your property, transferring it to another person may be seen as fraudulent.
  • Don't pay off personal loans — If you owe money to family members, now is not the time to repay them. Let the bankruptcy court determine the priority of your creditors and handle it through the proper channels.
  • Don't spend your retirement money — You have worked hard and do not want to lose the nest egg you have saved for retirement. By taking an early withdrawal from those accounts, however, you face penalties and taxes. It is not worth it. In fact, retirement accounts are often exempt in bankruptcy.

Learn About Your Options Today During A Free Consultation

During a free, no-obligation consultation, we will review your financial situation with you and discuss options that best fit you. Please call a lawyer at (801) 747-2222. We make payment easy — through debit cards and payment plans.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.