Gift-giving, including selling something for much less than it’s worth, can be a problem in a latter bankruptcy. But usually it’s not. Most people filing bankruptcy have neither a need nor the desire to hide anything from their creditors. There’s no need because most people’s assets are already protected through state and federal laws. There’s no desire because most … Read More
Prevent the forced repayment of a pre-bankruptcy payment to a relative or friend. If other solutions don’t work, Chapter 13 usually will. Our last two blog posts have been about one of the more confusing parts of bankruptcy: the law of preferences. This law says that if a creditor takes or receives money from you within the 90 days … Read More
At the Confirmation Hearing (which you almost never need to attend) the bankruptcy judge “confirms” (approves) your Chapter 13 payment plan. The Chapter 13 Plan As we said last week about the Meeting of Creditors, a Chapter 13 case is all about “the plan.” The plan is your financial road map during the 3 to 5 years that you … Read More
Just because you own something that isn’t exempt does not necessarily mean that your Chapter 7 trustee will liquidate it. Maybe not.
What happens when your bankruptcy trustee thinks you undervalued an asset? How does the trustee determine what you own and its value?
Selling or giving away something to prevent your creditors from getting it may make a certain amount of sense but could be very dangerous.
Prevent your trustee from giving you a big headache if you paid a debt to a friend or relative during the year before filing bankruptcy.
Doing what you believe is the right thing can backfire, if you pay a special creditor before you file bankruptcy.