You’re not likely to be accused of creating a fraudulent debt. But if so, bankruptcy can stop its collection. And resolve the problem. Most Debts are Discharged (Permanently Written Off) in Bankruptcy The federal Bankruptcy Code has a list of the kinds of debts that filing bankruptcy does not discharge. This list details the conditions under which discharge does … Read More
Giving a gift, or selling for less than true value, can cause problems when done before bankruptcy, but usually only if the amount is large.
Selling or giving away something to prevent your creditors from getting it may make a certain amount of sense but could be very dangerous.
Your assets can include property and possessions that you have sold or given away before filing bankruptcy.
A creditor might ask to pursue an insurance-paid claim or to finish a lawsuit determining if you incurred the debt through fraud.