As it sounds, this is not a term you care to associate yourself with if you can help it. Bad faith refers to certain actions and circumstances that cover fraudulent bankruptcy filings. In 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act was legislated to define and outline situations associated with bad faith bankruptcy filing. […]
What Does “Bad Faith” Mean in Bankruptcy?
There are numerous reasons a bankruptcy case may be dismissed. A dismissal of a bankruptcy case is when the federal judge issues an order terminating a case. Usually the debts are not eliminated if the case is dismissed. In contrast, a “discharge” means the debts have been eliminated. Listed below are the most common reasons […]
Fraudulent transfer of an asset in a Chapter 7 bankruptcy or a Chapter 13 bankruptcy usually occurs when a person knowingly transfers an asset – house, car, equipment, business, cash, stock, etc. – to another person or company to avoid losing the asset to a creditor or to the bankruptcy court. A fraudulent transfer can be reversed or voided by the bankruptcy court resulting in the loss of the asset after all.
If you have recently sold your home, you may still be able to file a Chapter 7 bankruptcy or Chapter 13 bankruptcy on your other debts. If you sold your home for more than you owed on the property, the bankruptcy court will want to know what you did with the excess money.