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
In most Chapter 7 cases nobody opposes your discharge of debts. They get written off. But the trustee is one who might raise issues. Last week we discussed the role of the Chapter 7 trustee in reviewing your assets at the “meeting of creditors.” Today we get into the other main job of the trustee, to, “if advisable, oppose … Read More
Sometimes in bankruptcy doing the honestly right thing can cause you major problems. Making preference payments is a good example of this.
If you are the beneficiary in a spendthrift trust, most likely a bankruptcy trustee can’t touch whatever property is in that trust.
Besides your creditors, the main person you need to be careful about in a “straight bankruptcy” Chapter 7 case is the trustee. Who’s that?
Charitable donations made during the two years before filing bankruptcy may fall within a safe haven of not being fraudulent transfers.
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.
Your trustee might be able to require a creditor to pay the trustee money you’d paid the creditor. Sometimes that’s good; sometimes not.
Beyond considering whether your assets have net value on the date of filing, do they generate rents, profits, or proceeds afterwards?
Bankruptcy is a lot easier to understand and much more comfortable to go through when you know who’s who.
You don’t like the idea of disclosing your financial life to the bankruptcy court. Can’t it be done with some privacy?
In Chapter 13 the trustee is a gate-keeper, overseer, and payment distributor. Quite different than in Chapter 7.
In bankruptcy you hear a lot about “the trustee.” What does this person do, in a “straight” Chapter 7 case, and in an “adjustment of debts” Chapter 13 one?
If your business has failed or is about to, it does NOT likely need a bankruptcy. But YOU personally might.
It sure helps in understanding the two main bankruptcy options if you know the cast of characters in each one.