Individuals Dealing With Debt Issues

  • This is a really bad idea; that is a textbook fraudulent transfer. There’s a look-back period under the bankruptcy code—two years federally and four years under Georgia law. Anything transferred within that period can be clawed back by the trustee, and the recipient can be sued. Even if there was no intent, the trustee can still recover the value of the transfer.
  • For example, if you transferred a truck worth $20,000 to your cousin for $100, that’s going to be a problem. The trustee will likely sue the cousin to recover the $20,000 value of the truck.
  • If you file under the wrong chapter, you can convert the case. For instance, you can go from Chapter 11 to Chapter 7, which is often done if reorganization under Chapter 11 isn’t feasible. Creditors or the U.S. Trustee may also file a motion to convert the case if they believe the chosen chapter is inappropriate or if the debtor fails to meet certain requirements.
  • For example, the U.S. Trustee might argue for dismissal or conversion to Chapter 7 if the debtor falls behind on monthly operating reports in Chapter 11.
  • If you file for bankruptcy, certain assets are considered exempt and can be kept.
  • This depends on the state you’re filing in. For example, in Georgia, certain properties like your home or vehicle may be protected under state exemption laws.
  • It depends on the chapter you file under. For instance, in Chapter 7, non-exempt assets are sold to pay creditors, but certain accounts like retirement accounts can typically be kept. Chapter 13 allows you to keep more assets since you are repaying debts over time.
  • Higher-income individuals who don’t qualify for Chapter 7 due to the means test may file under Chapter 11. Chapter 11 is a reorganization option, and it’s typically used for individuals with large amounts of debt that need to reorganize their finances.
  • Yes, in Georgia, only one spouse can file for bankruptcy. In community property states, both spouses would typically need to file if their combined debts are being addressed.
  • Bankruptcy can help by stopping foreclosure through the automatic stay. In Chapter 13, you can propose a repayment plan to catch up on missed mortgage payments over time. Chapter 7 might discharge certain debts, but it typically doesn’t help with keeping your home unless the mortgage lender agrees to a modification.
  • Yes, in Chapter 13, you may be able to ‘strip off’ your second mortgage if the value of your home is less than what you owe on the first mortgage. In Chapter 7, this is generally not possible unless the second mortgage is entirely unsecured.
  • If you lose your job while on a Chapter 13 plan, you may be able to modify the plan to lower your payments or extend the repayment period. If your income has significantly dropped, you should consult with your bankruptcy attorney to adjust your plan accordingly.
  • If your ex-spouse files for bankruptcy, it may affect any joint debts you have. You may need to file a motion to protect yourself if you’re still liable for any shared debts. It’s important to review the bankruptcy plan and understand your responsibility under any court orders.
  • If you’re going through a divorce and need to file for bankruptcy, it may help clear some of your debts, but it won’t eliminate obligations like child support or alimony. You should consult with both your divorce attorney and bankruptcy attorney to navigate these issues.
  • If you expect to receive an inheritance, it could become part of your bankruptcy estate if you file before you receive it. In Chapter 7, the trustee can claim the inheritance to pay creditors. In Chapter 13, the inheritance may affect your repayment plan depending on when you receive it and its value.
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