Should I pay off a credit card with a small balance before filing, or apply for a new credit card. Every creditor a consumer owes money to MUST be listed when a consumer files bankruptcy. The Bankruptcy Court will then notify the Creditor of the bankruptcy filing, and the Creditor will generally revoke charging privileges. If a consumer has a credit card with a balance of less than $500.00, however, the consumer may consider paying off the balance before filing for bankruptcy. If there is no balance owing to the Creditor at the time of filing, it is not necessary to list such Creditor in the bankruptcy schedules, and the Creditor will not be notified of the bankruptcy. Thereafter, the consumer will retain charging privileges. Similarly, a consumer may wish to consider applying for a new credit card before filing bankruptcy, but refrain from making charges on the card until after the bankruptcy filing. Again, the new creditor will not be notified of the bankruptcy filing and charging privileges will be retained. Of course, it is possible that a Creditor could learn of the bankruptcy filing some time after the fact through a credit report or some other means, and terminate charging privileges at that time.

Can I withdraw or take out a loan against a 401K,IRA or other similar retirement account to pay off or consolidate debt. Under Florida law, an individual's interest as a participant or beneficiary to a retirement plan such as a 401(k), IRA, or other similar tax-deferred retirement plan is exempt from creditors in bankruptcy. Therefore, a consumer may file bankruptcy, eliminate or consolidate debt, and retain all funds in their 401(k), IRA or other similar retirement plans (except deposits made one year before filing). Early withdrawal results in tax liabilities and penalties which are not dischargeable in bankruptcy. A consumer should consider filing bankruptcy to resolve their financial problems and preserving this difficult-to-accumulate asset for retirement purposes only.

Can I borrow money against a home to pay off excessive debt or consolidate debt. The Homestead laws in the State of   presently very favorable to bankruptcy debtors. Therefore, consumers should seriously consider resolving their financial difficulties through bankruptcy debt consolidation (Chapter 13) or bankruptcy debt elimination (Chapter 7). They could claim the equity in their home as exempt and emerge from bankruptcy with the equity in their home intact. Incurring additional long-term debt against a home often results in excessively high payments which may place consumers at risk of losing their homes at a later date.

Can I put property you own into someone else's name to prevent it from being taken by creditors or the bankruptcy trustee.  Transferring assets into some else's name prior to filing bankruptcy to protect the assets from being taken by the Bankruptcy Trustee is fraud on Creditors and can result in a Debtor's discharge being denied.  In addition, the Bankruptcy Trustee can take back the assets from the person to whom they were transferred.  Many assets owned by consumers are exempt which means they cannot be taken by a creditor or the Bankruptcy Trustee.  Debtors owning non-exempt assets may retain all assets in a Chapter 13 bankruptcy case.   

Can my boss fire me for filing bankruptcy? Some occupations and position require individuals to have security clearances. Those individuals may be affected by filing bankruptcy. However, the typical answer is No. U.S.C. Sec. 525, prohibits any employer from discriminating against you because you filed bankruptcy.

Will I ever get credit again? Yes!  A number of banks now offer "secured" credit cards where a debtor  puts up a certain amount of money (as little as $200) in an account at the bank to guarantee payment.  Usually the credit limit is equal to the security given and is increased as the debtor proves his or her ability to pay the debt.  Two years after a bankruptcy discharge, debtors are eligible for mortgage loans on terms as good as those of others, with the same financial profile, who have not filed bankruptcy. The fact you filed bankruptcy stays on your credit report for 10 years (chpt 7) and 8 years (chpt 13).  It becomes less significant the further in the past the bankruptcy is.  The truth is, that you are probably a better credit risk after bankruptcy than before.

DISCLAIMER
NO INFORMATION OR MATERIALS CONTAINED HEREIN ARE INTENDED TO CONSTITUTE LEGAL ADVICE, AND IS NOT APPLICABLE TO ANY SPECIFIC SET OF FACTS, ESPECIALLY AS TO ANY INDIVIDUAL'S PERSONAL SITUATION.  THE INFORMATION CONTAINED HEREIN NOR THE PERUSAL OF IT DOES NOT ESTABLISH NOR CONSTITUTE AN ATTORNEY-CLIENT RELATIONSHIP WITH UTAH BANKRUPTCY PROFESSIONALS OR ANY OF ITS ATTORNEYS.