What are some of the things that you should avoid before filing bankruptcy? I want to go into these because in the recent Georgia case, a woman was ordered to pay more than $8,000 back to the Chapter 7 trustee in her case. Some of the things that you should not do before filing bankruptcy would be, for example, to make large purchases. You should not be going out there and buying a brand new vehicle or a lot of furniture or things of that nature just before filing bankruptcy.
You also should not be transferring large amounts of property to anyone prior to filing bankruptcy. For example, you shouldn’t be conveying the title in your house to your spouse if she’s not filing or he’s not filing. You should not be transferring any vehicles to any family members or relatives unless the family member or relative pays for the vehicle info as to what the actual value is. You can’t sell a $10,000 vehicle to a family member for $3,000. That’s known as a badge of fraud transaction.
Also, as much as you want to, you should not be repaying any debts of old family members. There are exceptions to that. For example, if you have actual loan documents and canceled checks to prove that it was an actual loan to a family member, that would be a different circumstance but unless you have that type of documentation, you should not make those transfers. Please call me at 770-792-1000.
Bankruptcy FAQ:
Frequently Asked Questions: Table of Contents Who is permitted to file and maintain a chapter 7 case? Who should not file a Chapter 7 case? Is there anything that a person must do
The injunction is formally issued pursuant to 11 U.S.C. 362(a), commonly referred to as the Automatic Stay provision of the bankruptcy code, and it prohibits creditors from making further attempts to
In a recent case, In re Beck Mrs. Beck filed for bankruptcy protection but her husband did not. Together they owned a property which was valued at about $530,000.00. The property had actually been in
The Chapter 7 trustee objected to Mrs. Goulakos’s claim of exemption because she did not live in the house and because she was not the one who claimed the homestead exemption under Massachusetts