If a creditor objects to you writing off –discharging–a debt in a Chapter 7 bankruptcy on grounds of fraud, here are your practical options.
A creditor or a bankruptcy trustee could potentially object to the discharge–legal write-off–of ALL your debts. Very rare, and preventable.
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.
Bankruptcy can’t discharge–permanently write off–criminal debts, but it can still help in indirect but potentially game-changing ways.
Most debts can be discharged–permanently eliminated–in bankruptcy. Here are the exceptions.
Creditors will be a little less likely to challenge the writing off of recent uses of credit.
Watch out for this scam: a phone call seemingly from somebody you should trust, giving reliable sounding information, requesting money. You Wouldn’t Be Fooled by This If you get an email written in imperfect English from somebody saying she needs your help to move a huge amount of money out of her African country, and that you’ll get a healthy … Read More
Gift-giving, or selling for much less than actual value, can cause problems ahead of bankruptcy, but only if it’s a large gift.
Standard & Poor’s pays for giving AAA ratings to mortgage-backed securities that turned out to be little better than junk.
If you or your business is stuck in litigation that is sucking you dry financially and emotionally, bankruptcy may be your best way out.
So you’ve heard you can get into trouble if you use credit before filing bankruptcy. What are the rules about this?
You don’t like the idea of disclosing your financial life to the bankruptcy court. Can’t it be done with some privacy?
Don’t get caught up in a “fraudulent transfer.” It’s easier than you might think to do so, because it doesn’t take fraudulent intent.
Almost all paycheck garnishment is illegal from the moment your bankruptcy case is filed. Here’s what to do in the rare event it happens.