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Yes. And, if the sale of the asset is deemed fraudulent, or just unfair, the trustee can seek to "avoid" (i.e. cancel) the sale and drag the asset back into the bankruptcy estate.

For example, if the debtor sells his 2009 Chevy Corvette for $10 to his dad and then files bankruptcy, you can bet the trustee will seek to avoid that transfer as a fraudulent transfer and the trustee will grab the Corvette.

Or, if someone sells the debtor a 1974 Ford Pinto with no transmission for $1,000,000 before the bankruptcy is filed, again the trustee will likely avoid the sale and go get the money back since the debtor was treated so unfairly.

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!

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โˆ™ 2009-02-21 04:53:53
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Q: Can a bankruptcy trustee look back to a sale of an asset prior to filing for bankruptcy?
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Can you sell personal property when filing bankruptcy?

When filing bankruptcy all assets are placed in a bankruptcy estate. Some assets are allowed to be protected and qualify for an exemption by the trustee. Items that are placed in exemption are permitted to be sold, but the trustee should be notified prior to the sale.


Can i sue someone if i am in the prossess of a chapter 7 bankruptcy?

Not as a rule. If the claim was something that arose after the filing, it will depend on the nature of the claim. If the claim arose prior to filing, you must have disclosed the claim in the bankruptcy documents and the trustee may take over the claim. Consult a lawyer knowledgeable in bankruptcy.


Do you have to take a credit counseling course prior to filing bankruptcy?

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Not really. Cash advances can and will be scrutinized by the bankruptcy Trustee for up to ONE YEAR prior to your bankruptcy filing date. If you take a cash advance and then file bankruptcy, that portion of your debt may not be discharged, on top of having to account for why you took it and what you spent the money on.


How do you save your jewelry prior to filing bankruptcy in CA?

Doing so might jeopardize your bankruptcy and land you in jail.


Should you sell GM stock prior ot bankruptcy filing?

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When filing bankruptcy in Calif is it possible to keep a small savings account for emergencies?

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Can the Bankruptcy trustee include as part of your estate Tax Refunds which were received prior to the filing of your bankruptcy petition?

The quick answer would be no. Any money received prior to filing would not be included in your bankruptcy estate and this, not recoverable by the trustee. Any money still owed to you would be part of the estate and would be collectible. What I would want to know is if the money was completely spent or otherwise exempt on the day you filed. I disagree, and really don't understand the above. Any asset you had or had a right to (that would include everything you received, or things you have yet to receive - like tax refunds for overpayment of taxes) from earnings made PRIOR to your filing date are part of the BK estate. They are available for use to pay the liabilities or debts incurred or due from the PRIOR to filing periods. I do not understand why you would think a tax refund you received prior to filing BK would be exempt? The earnings from prior to BK, or savings accounts established prior to BK aren't. All your refund is - is an overpayment of the estimated payment of taxes for those periods...had you had the correct amount withheld (or estimated) for the tax...and had this same extra amount deposited and saved in a US Bank (instead of with the US IRS), you would agree it was available to the estate for creditors wouldn't you?


When filing bankruptcy is the trust property attached and liquided. How would a liquor licenses be affected.?

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Will IRS still take your income taxes after filing chapter 13 bankruptcy?

If you still owe federal income taxes, they will. But if they don't take it, the chapter 13 trustee gets the tax refund. You should have listed any income taxes that were dischargeable (due more that 3 years prior to the filing date).


Does bankruptcy protect you from a civil bench warrant?

No. It only protects you (financially speaking) from your creditors - NOT from the court. ALSO: Bankruptcy does not wipe out, or excuse, court ordered payments that were in effect prior to the bankruptcy filing.


Can you get a loan after bankruptcy in Canada?

After filing for bankruptcy in Canada you may borrow money. The risk is borne by the creditor. During bankruptcy, after filing but prior to being discharged, you may obtain credit with a value of up to $1,000. without advising the creditor of your bankruptcy. Should you seek to borrow more than $1,000 you are obliged to advise the lender that you have filed for bankruptcy.


How long do you have to wait after a bankruptcy discharge to inherit land?

The way this question is worded implies you want to manipulate the inheritance to avoid including it in your bankruptcy. If you become an heir to land or any property (cash, motor vehicle, etc.) prior to filing or while you are in bankruptcy, or within 180 days after discharge, you must disclose the inheritance to the trustee and the court, even if you have not actually received the property. There is no "waiting."


If I used my credit cards close to the filing of my bankruptcy will it harm when filing?

Yes. If you are declared bankrupt, the Official Receiver will review your conduct leading up to the bankruptcy. If you have obtained or used credit immediately prior to the bankruptcy, this could be considered fraudulent use and the Official Receiver may apply to Court for a bankruptcy restrictions order against you. Depending on the seriousness of the offence, this could be for a period of up to 15 years. The main restrictions in bankruptcy are; you cannot obtain credit of more than £500, you cannot be a company director and you cannot hold certain public offices, such as the trustee of a charity.


We are filing bankruptcy Can you rent an apartment or condo prior to filing?

You can.And in all fairness, you might consider disclosing to your new landlord that you intend to file, especially if you plan to declare any funds due in your new housing situation on your bankruptcy petition.


Can you make an Ira contribution prior to bankruptcy filing?

You can, but it will likely be reviewed and reversed by the court as being preferntial and in anticpation of bankrutpcy.


Can a Nevada HOA still place a lien on homeowner who failed to pay a special assessment prior to homeowner filing for Bankruptcy?

Your bankruptcy attorney can help you determine whether or not the special assessment was part of your bankruptcy proceeding.


How do you liquidate a company before filing bankruptcy?

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Can you withdraw from 401k prior to filing chapter 13?

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What are the rules for filing chapter 13 bankruptcy?

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Do you have to disclose a chapter 7 bankruptcy from 1993 to the trustee if you file again?

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Is it possible to buy a new car immediately prior to bankruptcy and still have credit card debt discharged?

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How can you remove a bankruptcy from your credit bureaus?

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Does filing bankruptcy improve a credit score if there were a lot of charged off credit cards and late payments prior to filing?

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