Utah Bankruptcy Attorney – Salt Lake and Utah County Some of the most common issues that kill a bankruptcy filing are preferences and fraudulent transfers. At Utah Debtor Protection, we help our clients understand what preferences and fraudulent transfers mean in a bankruptcy case and how to avoid them. Before filing for a client, we help our clients to realize what actions they can and can't take in regards to their assets prior to filing for bankruptcy. Preferences in Chapter 7 Preferences refer to payments made to creditors prior to filing for bankruptcy. Generally speaking, you can't make additional payments to creditors who are family members, business associates, or friends within a year of the time you file for bankruptcy. Essentially, a debtor is prohibited from preferring a creditor over another just prior to filing for bankruptcy. This means that if you have paid have given a credit a n increased payment within 3 months or 1 year depending on your relationship with the creditor, the bankruptcy trustee may be able to collect on the creditor to whom the payment was made. This is often an issue where a debtor owes money to mom, dad, or another family member and pays them off within a year of filing. Fraudulent Transfers In some cases, debtors try to give some of their assets away to family or friends before they file for bankruptcy. This is a big mistake and transactions such as these should not be engaged in without consulting a Utah bankruptcy lawyer. The general rule regarding fraudulent transfers is that a debtor may not give any real or personal property away within a 2 year time period of filing for bankruptcy, while the debtor was insolvent, unless the debtor received full market value for the transfer and can account for any proceeds. Free Consultation – Avoid Mistakes If you are thinking about filing for bankruptcy; if you have questions about your assets and past transactions; don't delay in consulting with an experienced bankruptcy lawyer in Utah. At Utah Debtor Protection we can help you avoid mistakes and ensure that your bankruptcy case is smooth sailing from start to finish. Get a fresh start in 2011. Call us today at 801.810.8825.
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