Tips for filing bankruptcy in Utah
Paying off debt is difficult, stressful, and exhausting. If you dealing with collection officers and harassing phone calls, declaring bankruptcy may be the best option for your situation. Since state laws vary, it is important to understand how Utah bankruptcy laws differ from other states. Debt Relief Bankruptcy Ogden is here to help answer any of your questions about filing bankruptcy in Utah. Follow these tips to find a way to finally be free from debt and start your financial life over.
Tip # 1 – Pay off small credit card balances
When you look at your financial situation, one of the best things you can do is evaluate what you can afford to pay. If you pay off a credit card with a small balance before filing, it can help to reduce your debt burden. If you have a credit card with a balance of less than $600.00, you will be able to avoid listing this creditor when filing bankruptcy, and you can keep your credit card open. Having at least one credit card without a balance aids in improving your credit rating after filing bankruptcy.
Tip # 2 – Do not withdraw or take out loans against your 401k or IRA.
Under Utah law, an individual’s retirement plan is exempt from creditors in bankruptcy. You are able to file bankruptcy and retain all your funds in the 401k without needing to pay early withdrawal fees or deal with tax liabilities. Borrowing from a retirement account can cause additional financial problems for you if you are unable to earn money to pay the loan back in a timely manner.
Tip # 3 – Do not use a home equity loan or line of credit to pay off debt.
Borrowing against your home to pay off debt can place your home vulnerable situation. We recommend consumers focus on resolving debt through bankruptcy debt consolidation or bankruptcy debt elimination. Avoiding a home equity loan or line of credit can prevent you from losing your home after declaring bankruptcy, so you can move forward with your financial life after bankruptcy.
Tip # 4 – Do not pay preferred creditors more than $600.00 before declaring bankruptcy.
Debtors must disclose all debt payments in their bankruptcy schedules. If you pay more than $600.00 within 90-days of bankruptcy filing, you can end up with a higher payment schedule when the Bankruptcy Trustee creates payment proceeds for the creditors.
Tip # 5 – Do not place property in another person’s name to avoid losing it.
Some people feel they can save their property by transferring it to a loved one, but this can actually cause more problems for you during the bankruptcy filing process. Transferring assets to a loved one can actually end up causing your discharge to be denied. A Bankruptcy Trustee can take back the assets that you transferred.
If you are struggling with what to do with your financial situation, contact LeBaron and Jensen today for more information and tips for filing Bankruptcy.