What would you like to do?
Can you sell assets before declaring bankruptcy?
yes this is usually what is done, as this is how the business may pay off some debts.
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Answer If you have no assets, then it's a great way to get rid of debt. Chapter 7 bankruptcy is FAST, and normally pretty cheap compared to what you get (all your debt …gone). If you have assets, you may be forced into a Chapter 13 and have to pay back some debt. Answer I like Nate's answer. But, if by your question you mean "I don't have any assets for creditors to come after, so why bother filing bankruptcy?" then I would say that there still might be reasons one would want to file. For example, even if you don't have a home or car that is subject to a judgment lien, creditors can still garnish wages (but not Social Security). Or, creditors can simply hassle you constantly on the phone. Another thing creditors can do, in Indiana at least, is sue you and keep dragging you back to court every month or so to explain why the judgment isn't paid. Then, the first time you miss a hearing, the creditor asks the Court to put a Writ of Attachment on you, which is basically a warrant for your arrest for contempt of court since you missed a hearing at which your presence was ordered by the Court. So, just because you don't have any property the creditors can take away doesn't mean that you don't need to file bankruptcy. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person. ANSWER You should consider petitioning for your own bankruptcy if you have debts that you cannot afford to repay. A large percentage of individuals who petition for their own bankruptcy have no assets and use bankruptcy as a solution to their debt problems. However, bankruptcy is widely regarded as a last resort and should be considered only after receiving expert advice.
Answer Selling or otherwise transferring an asset in anticipation of bankruptcy can cause issues. See a lawyer in your area. Please note that nothing in …this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.
Perhaps. If the filing party is on a deed for real property or joint bank account with the others that property might be "frozen" until the amount each party is entitled to i…s proven. It will depend on what the property is and how it is titled. If this is the issue it would be advisable to consult a bankruptcy attorney.
Answer hide the assets then file.
Answer Maybe but not normally. Generally speaking, you can keep your home during a Chapter 7 case so long as you "reaffirm" the debt to the mortgage company dur…ing the case. This means you contact the mortgage company and tell them you want a "reaffirmation agreement," then they will send you one and you sign it, they sign it, and you file it with the court. This reaffirmation agreement puts you back on the hook legally for the mortgage debt, but lets you keep your home. In other words, it allows the mortgage to pass through the bankruptcy unscathed. There are a couple of roadblocks to this though: (1) If you are not current on your mortgage payments, the mortgage company will usually not allow you to reaffirm the debt. So, generally people in Chapter 7 must be current on mortgage payments to be able to keep a home in a Chapter 7. (2) If you have too much equity in the home, the Bankruptcy Court may seek to sell the home. In other words, each State says how much equity in residential real estate a person who files bankruptcy in that State may protect. If you go over this amount, the Bankruptcy Court can sell the home to get that unprotected equity to give to your creditors. For example, in Indiana each person may protect $15,000.00 equity in residential real estate. So, if John files bankruptcy in Indiana and he owes $70,000 on his house and his house is worth $80,000, he is fine since he only has $10,000 in equity ($80,000 value minus $70,000 mortgage) and he is safe for up to $15,000. But, say John owes $70,000 on his house and it is worth $150,000. Now, John has $80,000 in equity ($150,000 value minus $70,000 mortgage) and he can only protect $15,000, so the Bankruptcy Court would sell the house, pay off the mortgage, give John his $15,000, and keep the remaining $65,000 to give to creditors. So, to keep a house in Chapter 7 be sure you are current on the mortgage and check and be sure you are within the amount of equity you are allowed to have in your State. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!
If the court requires they sell certain things at auction, you are as able to bid on them as anyone. And anyone can out bid you.
Yes but the trustee can seek to include the money received in your estate. If you have sold it to family or friends to avoid losing it in bankruptcy, the trustee can have the …sale reversed.
Sure, and it and all other assrts will be part of the BK and used to pay your debts, If you do it in anticpation of BK, thenit's fraud and you'll end up with your c…aase dismissed or criminal charges.
Yes you can as long as the money made from the sale isn't spent on holidays and the like, it has to be spent on day to day living expenses or declared to the official re…ciever.
At the moment the court receives the petition, and gives it a docket number, all the debtor(s)' assets are "frozen" as they become property of the bankruptcy estate, administe…red by the trustee. In a Chapter 7, if the trustee files a finding of no assets, which mean the trustee accepts all exemptions claimed by the debtor(s) and there are no assets to be sold to satisfy the creditors, the property is available once more to the debtor. In a chapter 13, the freeze continues until the plan is approved except for regularly occurring payments for utilities, food, etc. In both cases, if the case is dismissed, the property is also unfrozen.
Yes! Lehman's downfall brought the common stock down 94% that day. Then a few days later the shares will be rendered worthless as the bankruptcy proceedings continue.
No, all your assets...and all your debts and obligations..are under the controll of the Court..as you asked!
If the property is sold for fair market value, yes.
If the bankruptcy is a Chapter 7, and the asset is not exempt, you cannot sell it. It is the property of the bankruptcy estate administered by the trustee. If the asset is exe…mpt, you can sell it and keep the proceeds. If the asset sells for a lot more than you listed its value as, be prepared for a claim by the trustee. If in a Chapter 13 and the Plan has been approved by the court, you are a debtor in possession and can sell assets with no problem, unless, as above, the asset turns out to have a significantly higher value than you listed.
If the value of the assets greatly exceed the allowable exemptions, then yes they can be seized.
Secured creditors to the extent of their security on specific property (e.g., mortgage interest on real property)