There are some universal truths in the world. These are things that always apply no matter what. When you are contemplating filing a bankruptcy in St Paul, Minnesota, I can tell you there are 2 things you should NEVER do before filing bankruptcy.
Now, to be clear, you should always seek the advice of competent St Paul Minnesota Bankruptcy Lawyer before do anything, but if you insist on proceeding without one, here are two things you should never do before filing bankruptcy...
- Do not transfer any assets to anyone if you believe you need to file bankruptcy. Look, transfers that you make between 2-6 years prior to filing bankruptcy are going to be scrutinized by a bankruptcy trustee. If you are afraid your creditors may take your assets before or during a bankruptcy, and you transfer your assets, you may have just assured that a bankruptcy trustee will be able to take that asset. Why? Because any transfer you make within 2 years prior to filing a bankruptcy, where you transferred the asset and received nothing in return is a fraudulent transfer under section 548 of the Bankruptcy Code.
- Do not pay family members 600 or more within 1 year prior to filing a bankruptcy. If you pay a family member 600 or more within a year prior to filing bankruptcy, that may be considered a preference under section 549 of the Bankruptcy Code and those funds may have to be returned to the trustee to be disbursed to your creditors pro rata. I know our guests would “prefer” to pay back relatives money owed to them, but that me be a problem once the bankruptcy is filed.
CONTACT A ST PAUL BANKRUPTCY LAWYER
When the time is right, or when you are ready, reach out to Minnesota’s highest google reviewed St Paul Bankruptcy Law Firm guaranteed or 100% off your fees. You will be glad you did.
Kain & Scott, P.A.
445 Minnesota St Suite 1500
St Paul, MN 55101