January 16, 2011

Don't Give Away Cash or Property to Family and Friends Prior to Filing for Bankruptcy

If you are considering bankruptcy and have an asset that may be of value and that may not be exempt in that bankruptcy case, it would be wise to speak with an experienced bankruptcy attorney before you transfer it to another person or entity.

Transferring assets to anyone prior to filing bankruptcy can result in the loss of the bankruptcy discharge, the loss of the asset or even jail time and fines under certain circumstances. In other words, the law has already "thought of that".

Congress enacted specific provisions in the bankruptcy code (see sect. 548) which allows

Continue reading "Don't Give Away Cash or Property to Family and Friends Prior to Filing for Bankruptcy" »

Posted by Campbell & Coombs | | Email This Post

Posted In: Assets and Bankruptcy , Assets and Bankruptcy , Bankruptcy Basic Questions , Bankruptcy Timeline

Bookmark and Share

October 22, 2010

Tax "return" must be filed 2 years before filing bankruptcy

Taxes for which returns were not filed at all or...were filed, but within 2 years of filing a bankruptcy are not dischargeable.

The issue here is not always just the two year date as that becomes relatively easy to calculate.

It is more often whether or not the return is actually a "return" for purposes of this rule.

If the IRS has filed a substitute return and then the filer submits a correct return later, and more then two years before the bankruptcy filing, the two year rule may not be met as the return may not qualify as a "return".

Posted by Campbell & Coombs | | Email This Post

Posted In: Bankruptcy Basic Questions , Bankruptcy Timeline , Taxes and Bankruptcy

Bookmark and Share

October 17, 2010

3 years before bankruptcy is filed and tax debt

Tax debt that is based on your income and for which a return was required to be filed within 3 years prior to the filing of your bankruptcy petition is not dischargeable in bankruptcy. See 11 U.S.C. Sect 523(a)(1)(A).

The "due date" includes extension dates. So if you filed for an extension to Oct. 15. you would not begin counting the three year period until Oct 15.

The 3 year period is also extended by a prior bankruptcy plus 6 months.

Posted by Campbell & Coombs | | Email This Post

Posted In: Bankruptcy Basic Questions , Bankruptcy Timeline , Taxes and Bankruptcy

Bookmark and Share

October 14, 2010

Recent Chapter 7 Bankruptcy and Need to File Again?

If you filed a chapter 7 bankruptcy within the last 8 years and received a discharge, you cannot file another chapter 7 bankruptcy.

It is common for chapter 7 bankruptcy filers to need another bankruptcy. So, what do they do?

If it has been less then 4 years, they use a chapter 13 bankruptcy.

11 U.S.C. Section 1328 (f)(1) lays out the rule.

A debtor cannot receive a discharge under chapter 13 if he or she received a discharge in a chapter 7, 11, or 12 bankruptcy filed within the last 4 years.

If it has been 4 years and a day, another bankruptcy can be filed.

There are circumstances where the discharge is not needed, and a chapter 13 bankruptcy may be used for other reasons. In those situations, it may be possible to file the chapter 13 bankruptcy post chapter 7 and prior to the 4 year period,

Posted by Campbell & Coombs | | Email This Post

Posted In: Bankruptcy Basic Questions , Bankruptcy Timeline

Bookmark and Share

October 12, 2010

A prior Chapter 12 or Chapter 13 Prevents a Chapter 7 bankruptcy Discharge

If you have filed a chapter 12 or more commonly a chapter 13 bankruptcy and received a discharge of one of those cases within the the last 6 years i.e. you cannot file a chapter 7 bankruptcy and receive a discharge.

This scenario is much less common in my experience than the debtor who has filed a chapter 7 bankruptcy previously and is seeking to file another chapter 7. In that situation the time between filing dates must be 8 years.

Read 11 U.S.C. Sect 727 (a)(9) for more.

Posted by Campbell & Coombs | | Email This Post

Posted In: Bankruptcy Basic Questions , Bankruptcy Timeline

Bookmark and Share

October 8, 2010

A Prior Bankruptcy Prevents a Chapter 7 Discharge

If you filed a chapter 7 bankruptcy and received a discharge within 8 years of the filing of your present chapter 7 bankruptcy case, you are not entitled to receive a discharge in the present case.

It is 8 years not 6.

Look at 11 U.S.C. Section 727 (a)(8).

Posted by Campbell & Coombs | | Email This Post

Posted In: Bankruptcy Basic Questions , Bankruptcy Timeline

Bookmark and Share

Contact Us

Recent Entries

Legal Blogs