Bankruptcy No-No’s in Minnesota

Posted by Wesley Scott on July 22, 2019 at 10:22 AM
Wesley Scott

What not to do when filing for bankruptcySo, you have come to the decision to file for bankruptcy. You have weight your options and are ready to contact a Kain & Scott attorney to file your Minnesota bankruptcy case. There are a few things that you need to take into account and to be mindful of to ensure your bankruptcy goes smoothly and swiftly!

First, if you are thinking of filing bankruptcy, do not transfer assets. Many times clients do not lose any assets when filing –your attorney can discuss ways to protect these with you. But, if you were to transfer your camper to a relative (free of charge) in an attempt to hide it, you will lose it. This is considered a fraudulent transfer.

Grandma gave you a little loan a while back so she has got to be listed as a creditor in your bankruptcy. Now, no one wants to screw granny over by not having to pay back that loan anymore so you pay her back the couple thousand before filing for bankruptcy. This is a preferential payment and can result in Mamaw getting sued in a bankruptcy court! The second thing you do not want to do before filing for bankruptcy is make payments back to friends or relatives.

Finally, make sure that you never incur debt that you do not intend to pay back. If you know you are going to be filing for bankruptcy and start racking up the credit card debt and going crazy with the spending –you are looking at fraud and, very possibly, the completely loss of a discharge of debt through bankruptcy.

The bottom line is do not do anything that hides assets, defrauds your creditors, or is all-around sketchy before filing for bankruptcy. Fully disclose everything to your bankruptcy attorney. The best way to ensure that your bankruptcy is above board and smooth as butter is to consult a Kain & Scott attorney to discuss your situation!

Conclusion

Questions about assets, transfers, or debts? Request a FREE bankruptcy consultation with MN’s MOST EXPERIENCED bankruptcy law firm at www.kainscott.com