If you are considering filing for bankruptcy, there are steps you should take and steps you should avoid. Knowing which is which is dependent upon your unique circumstances. The attorneys at the Arizona Law Group of Trezza & Associates, LLC, will work with you personally to help you determine which steps you should avoid in order to have a successful bankruptcy.
To discuss your specific circumstances with Arizona bankruptcy attorney Stephen Trezza, contact us to schedule a consultation.
There are numerous factors to consider when preparing for bankruptcy. Following is a list of four actions that are generally disadvantageous to people seeking debt relief through bankruptcy.
- Don't use your credit cards once you have decided to file. When you have decided you are going to file for bankruptcy, do not incur additional debt that you do not intend to pay. Depending on the time frame and the amount of debt involved, the debt may not be discharged in the bankruptcy.
- Don't transfer property to another person's name to keep it from being taken. This type of transaction could be considered fraudulent, putting you at risk of having your bankruptcy discharge denied.
- Don't repay family members. The priority of your creditors will be determined by the court. In the eyes of the law, your family members do not necessarily have priority over other creditors.
- Don't withdraw money from your retirement account to pay down loans. Early withdrawal from an IRA, 401(k) or other retirement account will make you liable for penalties and tax liability. In most cases, retirement accounts are exempt in bankruptcy.
Contact Us to Learn More About the Bankruptcy Process in Arizona
Every case is different, so it is important to discuss your situation with a Phoenix bankruptcy lawyer before making a decision. Contact us to discuss your options. We represent clients from Phoenix, Tucson and throughout Arizona.
