You file a Chapter 7 Bankruptcy right? You know going into it that you made a preferential payment of 7k to your dad, no surprise there. Your local bankruptcy lawyer has prepped your case well. But, it dawns on you, what happens to the money the Chapter 7 trustee claws back from your dad? Where does the 7k go to?
Section 554 of the Bankruptcy Code outlines a Chapter 7 trustee’s right to abandon assets in a Chapter 7 Bankruptcy case. There are one of two ways an asset gets “abandoned” in a Chapter 7 Bankruptcy case. First, trustee files a notice of abandonment with the bankruptcy court or second, presumptively abandoned by trustee. If an asset was listed but not administered by trustee when the case is closed, the asset is deemed abandoned.
Bankruptcy Rule 4003(a) requires debtors to disclose assets debtor claims to be exempt. Pursuant to Bankruptcy Rule 4003(b) Chapter 7 trustees have 30 days after the meeting of creditors or whenever an amendment has been filed to the exemptions to object to an exemption, whichever is later. If exemptions are not objected to, title to the assets revert back to debtor. In other words, after this period of time, debtor’s assets, once owned by the estate, revert back to debtor.
With most unsecured debts in Chapter 7 Bankruptcy, there is a presumption in favor of discharging the debt in bankruptcy. The presumption in favor of discharging the debt in Chapter 7 Bankruptcy goes against the back drop of a creditor’s right to object to discharge under Section 523 of the Bankruptcy Code.
Section 548 of the Bankruptcy Code addresses fraudulent transfers. The look back period is 2 years. If, within 2 years before you filed your Chapter 7 Bankruptcy case, you gave or transferred any asset to anyone else for less than fair market value that is a fraudulent transfer.
Section 541(a) of the Bankruptcy Code defines assets of the Chapter 7 Bankruptcy estate. Essentially, it is all legal and equitable interests’ debtor has in the world on the date the bankruptcy petition is filed with the bankruptcy court.
This is one of the saddest blogs I think I will ever do. People hate seeing the doctor no matter what. Males are especially notorious for not going to the doctor. I don’t have to tell women the dignity you lose at the hospital because they already know. Men don’t go to the doctor until it’s absolutely necessary- and if it is something embarrassing, they would almost rather die! NO lie!
Section 548 lays out the Bankruptcy Code’s basis for a fraudulent transfer. Section 548 limits the period to 2 years immediately preceding the commencement of the Chapter 7 Bankruptcy case. However, there are some state based claims Chapter 7 trustees can sometimes latch on to and pursue
There are unsecured debts in Chapter 7 Bankruptcy that do not get discharged. Nobody has to object or say a word, debtor remains liable on the debt. Section 523 of the Bankruptcy Code lists a number of exceptions to discharge. In other words, the general rule is debtor’s unsecured debts get discharged or wiped out. However, Section 523 lists those debts that do not get discharged regardless of whether creditor objects or not.
Yes, there are. While Section 541(a) of the Bankruptcy Code broadly outlines the extent of the bankruptcy estate, and it includes almost all assets of the debtor, there are assets that are not part of the bankruptcy estate. By that, I mean the assets never become part of the bankruptcy estate, and therefore, do not get administered by the trustee.
This is the whole purpose of filing Chapter 7 Bankruptcy to begin with. Getting rid of overwhelming debt. Many people want to know, well what can I include in a Chapter 7 Bankruptcy? Can I get rid of medical bills? What about trade payables? What about utilities even?
How many of us have lost income at one point or another? I bet we all have. Losing income is about as American as apple pie and baseball. How many plants have closed and gone over seas? How many times has an employer eliminated over time? How often have you changed careers and started over at lower pay? It’s call life, the humility of being alive.
I’ve written in earlier blogs about the decision-making involved in deciding whether filing a chapter 7 bankruptcy case or a chapter 13 bankruptcy case is the best choice for a particular client.
Sometimes the unexpected happens. Sometimes the expected happens with unexpected consequences. When a loved one passes away and he or she had debt, what happens? Are you responsible for the debt? Can you get rid of that debt by filing bankruptcy? Ah, the worlds of probate and bankruptcy collide at the worst time and your head is spinning.
No, just because you are married, if one spouse files a Chapter 7 Bankruptcy, that will not negatively affect your spouse. Your spouse has not filed Chapter 7 Bankruptcy, you have. The Chapter 7 Bankruptcy will go on your credit report, not your spouses.
