{"id":2489,"date":"2018-08-06T19:14:01","date_gmt":"2018-08-06T19:14:01","guid":{"rendered":"https:\/\/phoenixfreshstartbankruptcy.com\/?p=2489"},"modified":"2019-08-13T12:26:28","modified_gmt":"2019-08-13T12:26:28","slug":"phoenix-bankruptcy-traps-series-part-1","status":"publish","type":"post","link":"https:\/\/phoenixfreshstartbankruptcy.com\/phoenix-bankruptcy-traps-series-part-1\/","title":{"rendered":"Phoenix Bankruptcy Traps Series Part 1"},"content":{"rendered":"<h2><span class=\"ez-toc-section\" id=\"Part_One_Phoenix_Bankruptcy_Traps\"><\/span>Part One: Phoenix Bankruptcy Traps<span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6640e932bc68c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6640e932bc68c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/phoenix-bankruptcy-traps-series-part-1\/#Part_One_Phoenix_Bankruptcy_Traps\" title=\"Part One: Phoenix Bankruptcy Traps\">Part One: Phoenix Bankruptcy Traps<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/phoenix-bankruptcy-traps-series-part-1\/#1_Cash_Advances_and_Balance_Transfers\" title=\"1. Cash Advances and Balance Transfers\">1. Cash Advances and Balance Transfers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/phoenix-bankruptcy-traps-series-part-1\/#2_Transferring_Property_to_Friends_or_Relatives\" title=\"2. Transferring Property to Friends or Relatives\">2. Transferring Property to Friends or Relatives<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/phoenixfreshstartbankruptcy.com\/phoenix-bankruptcy-traps-series-part-1\/#3_Taking_money_out_of_Retirement_Accounts_to_Pay_Off_Debts\" title=\"3. Taking money out of Retirement Accounts to Pay Off Debts\">3. Taking money out of Retirement Accounts to Pay Off Debts<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n\n<p>The fact is what you do not know will hurt you. If you are having financial problems, get in to see a skilled Phoenix bankruptcy attorney as early as possible. If the right measures are not taken soon enough, bankruptcy options that might preserve your property and money may be lost for good.<\/p>\n<p>This is the first of a series of blog posts where we will go over some of the traps that await the unwary in bankruptcy. Almost all of these can be easily resolved and avoided with the advice of counsel<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Cash_Advances_and_Balance_Transfers\"><\/span>1. Cash Advances and Balance Transfers<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It is not uncommon for people struggling with debt to rob Peter to pay Paul. Generally what this looks like is you start making balance transfers or cash advances on one credit card to pay off balances owed on the others.<\/p>\n<p>Unfortunately, this isn\u2019t just a sure sign of desperation, but the amounts that you obtain as cash advances might not be dischargeable in a future bankruptcy. If you are in this position, you are probably making your situation worse instead of better. You should stop immediately and seek the advice of a Phoenix bankruptcy attorney.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Transferring_Property_to_Friends_or_Relatives\"><\/span>2. Transferring Property to Friends or Relatives<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In Arizona, transferring assets to relatives or friends for less than face value is usually considered fraudulent without adequate consideration is usually considered fraudulent by the Bankruptcy Court.<\/p>\n<p>Once the transfer is discovered by the bankruptcy trustee, the transfer is reversed. Even worse, under normal circumstances, you lose your ability to protect the asset with an exemption. This leaves the trustee in a perfect position to sell off your asset and give you nothing.<\/p>\n<p>It doesn\u2019t end there though. If you failed to disclose the transfer of a significant asset to a friend or family member, the transfer could result in you being denied a discharge. If you have transferred something, disclose it to your bankruptcy attorney so that action can be taken to protect you.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Taking_money_out_of_Retirement_Accounts_to_Pay_Off_Debts\"><\/span>3. Taking money out of Retirement Accounts to Pay Off Debts<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Most retirement accounts are protected in bankruptcy. It is unfortunate then that most debts that people pay off when they start emptying their retirement accounts would have been eliminated in bankruptcy anyway.<\/p>\n<p>Making matters even worse, taking money out of retirement accounts results in tax penalties. You are literally incurring penalties that will not be eliminated in bankruptcy to pay off debts that can be eliminated in bankruptcy. That makes no sense at all.<\/p>\n<p>If you have any questions about the issues raised in this post, make an appointment to meet with a Phoenix Bankruptcy Attorney. We are always happy to help.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Part One: Phoenix Bankruptcy Traps The fact is what you do not know will hurt you. If you are having financial problems, get in to see a skilled Phoenix bankruptcy attorney as early as possible. If the right measures are not taken soon enough, bankruptcy options that might preserve your property and money may be lost for good. This is the first of a series of blog posts where we will go over some of the traps that await the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2461,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/2489"}],"collection":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/comments?post=2489"}],"version-history":[{"count":0,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/posts\/2489\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media\/2461"}],"wp:attachment":[{"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/media?parent=2489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/categories?post=2489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phoenixfreshstartbankruptcy.com\/wp-json\/wp\/v2\/tags?post=2489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}