Filing Bankruptcy? Choose Either Chapter 7 Or Chapter 13
Most people are not thrilled with the prospect of filing bankruptcy. Individuals would rather the whole event be kept quiet. While this is understandable, it is sometimes advisable for you to discuss your financial situation with your family members and let them know that you are thinking about Filing Bankruptcy.
Sometimes, family members will loan you money to try to help you stop a bankruptcy filing. While this is no doubt well-meaning, careful thought should be given to whether this really solves the problem or merely postpones the inevitable. However, another problem may arise if your family members are not aware that you are thinking about filing bankruptcy. A family member may actually transfer property to you for reasons that may not be clear to you. Obviously, with this asset transferred to you, it may affect your bankruptcy case and just as importantly, affect the property that your family member transferred to you.
People that are in bankruptcy always want to know when they'll get their property back. Once you file for bankruptcy, all your property is technically no longer yours. Instead it is now part of a new entity called the Bankruptcy Estate, pursuant to 11 USC 522. Nevertheless, in most cases, it goes back to you relatively quickly.
In Chapter 7 bankruptcy, all your property comprises the bankruptcy estate until one of a few events occur. Likewise, the same applies in Chapter 13 bankruptcy depending what type of jurisdiction you are in. Ask an attorney for more clarification in this regard. So, while you are in possession of the property, it technically is not yours. You cannot sell, transfer, loan, move, or otherwise dispose of the property without violating bankruptcy law. This is why it's important to have the expertise of a bankruptcy attorney to make sure mistakes aren't made. The bankruptcy attorney will know the bankruptcy exemption laws that would best suit their client's personal situation. The debtor can choose from using the federal bankruptcy exemption laws or the state's laws from where they reside. Most people use the state's laws because they are more generous. Typically, the state government understands situations specific to their region like farming for example. They wouldn't want to take away a Farmer's tractor in a bankruptcy filing as it would be impossible for them to continue on working after the bankruptcy discharge.
These are reasons why hiring a bankruptcy attorney is a good idea as the bankruptcy code has become much more complex. Most attorneys will offer a free initial consultation to discuss your particular situation. Don't take any chances when your family's future is at stake.
Sometimes, family members will loan you money to try to help you stop a bankruptcy filing. While this is no doubt well-meaning, careful thought should be given to whether this really solves the problem or merely postpones the inevitable. However, another problem may arise if your family members are not aware that you are thinking about filing bankruptcy. A family member may actually transfer property to you for reasons that may not be clear to you. Obviously, with this asset transferred to you, it may affect your bankruptcy case and just as importantly, affect the property that your family member transferred to you.
People that are in bankruptcy always want to know when they'll get their property back. Once you file for bankruptcy, all your property is technically no longer yours. Instead it is now part of a new entity called the Bankruptcy Estate, pursuant to 11 USC 522. Nevertheless, in most cases, it goes back to you relatively quickly.
In Chapter 7 bankruptcy, all your property comprises the bankruptcy estate until one of a few events occur. Likewise, the same applies in Chapter 13 bankruptcy depending what type of jurisdiction you are in. Ask an attorney for more clarification in this regard. So, while you are in possession of the property, it technically is not yours. You cannot sell, transfer, loan, move, or otherwise dispose of the property without violating bankruptcy law. This is why it's important to have the expertise of a bankruptcy attorney to make sure mistakes aren't made. The bankruptcy attorney will know the bankruptcy exemption laws that would best suit their client's personal situation. The debtor can choose from using the federal bankruptcy exemption laws or the state's laws from where they reside. Most people use the state's laws because they are more generous. Typically, the state government understands situations specific to their region like farming for example. They wouldn't want to take away a Farmer's tractor in a bankruptcy filing as it would be impossible for them to continue on working after the bankruptcy discharge.
These are reasons why hiring a bankruptcy attorney is a good idea as the bankruptcy code has become much more complex. Most attorneys will offer a free initial consultation to discuss your particular situation. Don't take any chances when your family's future is at stake.
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