National Association of Consumer Bankruptcy Attorneys
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What You CANNOT do When in Bankruptcy in Colorado

Just as I advise clients as to what is permissible when filing for bankruptcy in Colorado, it’s equally important to discuss with debtors in Colorado what is not allowed during the bankruptcy process.

  • Do not make payments on loans to preferred creditors such as friends or family to the detriment of ordinary unsecured creditors, such as credit card companies. This is called an insider preference and the bankruptcy trustee in Colorado can sue the recipient of such payments on behalf of the other unsecured creditors.
  • Do not transfer property to family or a friend in contemplation of filing bankruptcy with the expectation of later receiving the property back after the case is closed. This is called a fraudulent transfer. (Specifically, do not transfer property to a relative within a year before the filing.)
  • Don’t pre-pay balances owed to any secured or unsecured creditor immediately prior to filing for bankruptcy.
  • Don’t sell your property for less than fair market value. The balance may be treated as a fraudulent transfer.
  • Don’t purchase any luxury (e.g. non necessity) items, particularly on a credit card, immediately before the case is filed.
  • Don’t withdraw any cash advances from a credit card immediately before bankruptcy.
  • Prior to making a withdrawal or borrowing from an ERISA qualified retirement plan, always be aware of any tax consequences that the discharge will not eliminate.
  • If you anticipate receiving an inheritance or Federal/state tax refund, first consult your Denver bankruptcy lawyer as the timing of filing may be an issue.
  • If you will be getting married before filing for bankruptcy, your lawyer will need to know your spouse’s income, as this income may push a chapter 7 into a chapter 13, or make an contemplated chapter 13 plan payment even higher.
  • Know that some unsecured debts may be not discharged. Many tax debts and domestic support obligations cannot be discharged, and student loans are almost impossible to discharge, absent extreme hardship.
Client Reviews
★★★★★
David Serafin is a talented and respectful attorney that works hard to get the best results for his clients. He's thorough at reviewing client cases and patient at explaining all the available options. I would certainly recommend him to anyone searching for help with a bankruptcy, a tax situation or estate planning. A. K.
★★★★★
Mr. Serafin is a consummate professional and his hard work and legal advice are second to none. He will give you outstanding personalized legal service, and you will be glad you chose him as your attorney. While some lawyers have a bad reputation for lacking ethics, Mr. Serafin holds himself to the highest of ethical standards and is in good standing with the Colorado bar. Pick Mr. Serafin for your tax and other legal needs - you will be glad you did. R.S.
★★★★★
If you are in need of a excellent attorney who will provide you support, guidance, professionalism, and most importantly, INTEGRITY. David does it all! I would not pass up his due diligence! R. T.