Fraudulent Transfers

What Does “Bad Faith” Mean in Bankruptcy?

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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. … Read more

What Are the Most Common Reasons A Bankruptcy Case is Dismissed?

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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 a bankruptcy case could be dismissed:

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1)    The debtor gives a false oath or information on the bankruptcy petition with the intent to defraud creditors,

2)    The debtor has filed a previous bankruptcy within a certain time period and is not eligible to file another bankruptcy and receive a discharge of the debts,

3)    The debtor has not filed all the required documents with the bankruptcy court,

4)    The debtor did not take and complete the required court approved credit counseling and/or financial management courses as required by federal law,

5)    The debtor fails to provide certain documentation to the bankruptcy Trustee upon request of such documents by the Trustee,

6)    The bankruptcy Trustee has objected to the discharge of the debtor’s debts based upon his investigation of the debtor,

7)    In a Chapter 13 repayment plan, the debtor fails to make the required Chapter 13 plan payments to the Chapter 13 Trustee,

8)    The debtor has non-exempt property and fails to turn such property over to the Trustee upon request,

9)    The debtor fails to obey a lawful order of the court, and

10) The bankruptcy judge believes there is good cause to deny the debtor a discharge and dismisses the bankruptcy case.

In conclusion, the above list is not exhaustive, but does highlight some of the most common reasons a bankruptcy case could be dismissed.

Danger of Fraudulent Transfers in a Bankrutpcy

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[youtube]http://www.youtube.com/watch?v=_SCUIajLF4I[/youtube]

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.  Any transfer of an asset prior to filing bankruptcy should be avoided, since it will most likely be scrutinized by the bankruptcy court.  The transfer of an asset to an insider, such as a relative or a business partner, will be scrutinized even more

Can I File Bankruptcy If I Recently Sold My House?

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[youtube]http://www.youtube.com/watch?v=eSBkSGHTBY4[/youtube]

 

Yes, you can file for bankruptcy if you have recently sold a home. You will, however, need to wait at least 90 days. You may even have to wait a bit longer depending on how much money you had received from the sale. Make sure that you discuss this with your attorney. He or she will probably ask to see a copy of the closing papers so that they can determine how long you may need to wait before filing. Usually the court will not have a problem with you selling your home so recently as long as it was not sold to an insider, such as a family member.

Also be prepared that the bankruptcy Trustee may want to know what you did with the excess money that you received from the sale of your home. Be prepared to be able to explain this. It is a good idea to keep excellent record of where this money goes. Keeping copies of bank statements and cancelled checks will help with this. The court will want to be able to see that the money was used for necessary expenses, such as food, and not on something such as a vacation or other luxury items.

If you try to file bankruptcy immediately after selling your home and you have a large amount of money in the bank, used the money to purchase non-necessities or gave it to family then you may not be able to file for bankruptcy. As always, it’s in your best bet to contact a bankruptcy lawyer in your area to see what they recommend.