Individuals considering filing bankruptcy in Utah should keep in mind that spending any cash that is not protected by bankruptcy exemptions (such as funds in your bank or a tax refund) will be reviewed by the bankruptcy Trustee shortly after you file your case. That's because there are some ways debtors could try to spend money in an effort to hide their assets or otherwise skew the bankruptcy court's perception. Spending money improperly prior to filing a bankruptcy can cause seriously problems in your case, ranging anywhere from having to answer a string of questions to facing fraud charges.
Below is a list of the generally approved and prohibited expenses prior to filing a bankruptcy in Utah. That said, this is for general awareness purposes only and should not be mistaken as legal advice. Our providing this information does not create a client-attorney relationship or otherwise obligate Lincoln Law to represent you.
|Approved Expenses||Prohibited Expenses|
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Here are some important considerations:
- This list is not all encompassing – if something is not listed above, we recommend you assume it is not approved until clearing it with your attorney
- There can be exceptions, so it's best to discuss your pre-bankruptcy expenses with your attorney
- If you have already paid for something on the Prohibited list, it's best to consult with an attorney on the best course of action
As you can see, bankruptcy isn't a 1-size-fits-all process. Bankruptcy is governed both by Federal and State laws and can be very complex, full of 'ifs' 'ands' 'ors' and 'buts'. The only advice we can give -- see an experienced bankruptcy attorney if you are considering bankruptcy, and talk to them about your expenses!