CAN I TRANSFER ASSETS TO OTHER BEFORE FILING IN ORDER TO AVOID LOSING THEM IN A CHPATER 7 BANKRUPTCY?

In a bankruptcy case, trustees have a lot of power and discretion. They are working on behalf of the creditors in order to determine whether there are any assets of the debtor that can be seized and distributed. As a result, the trustee is not going to look favorably upon a debtor transferring property or assets in order to keep them out of the hands of the trustee. In my experience, any transfers done within one year prior to the filing of the petition can be reversed by the trustee or he/she can pursue those assets. This is referred to as the "lookback period." If the transfer was made more than four years ago, those assets will usually be outisde the scope of the bankruptcy proceeding. The gray area comes in between those two periods. If the trustee feels the transaction was performed primarily to keep the assets out of bankruptcy, he will likely pursue them if it was done within the last four years. If the transfer looks like a bona fide good-faith transaction, the trustee will probably have no problem with it provided it occurred over one year ago.

WCZ
http://www.westmontattorneys.com

WHAT DEBTS ARE DISCHARGED IN A CHAPTER 7 BANKRUPTCY?

We are asked many times by clients which debts will be discharged through a Chapter 7 bankruptcy. Typically, all unsecured debt such as credit cards, medical bills, and utilities will always be dischargable. With secured debts such as mortgages, car loans, and home equity lines of credit, it is a little complicated and will be discussed in a later post. However, federal statute lays out certain debts that are not dischargable under a Chapter 7 bankruptcy, such as student loans, alimony and child support, some taxes, and criminal restitution. Contact one of our bankruptcy lawyers today to learn more about your specific situation and what debts may be discharged.

WCZ
http://www.westmontattorneys.com

WHAT TYPE OF PROPERTY IS EXEMPT FROM A CHAPTER 7 BANKRUPTCY?

In Illinois, the state has a statutory list of property that is exempt from bankruptcy, meaning it cannot be touched or seized by the trustee. For example, up to $15,000 worth of equity in your house and $2,400 worth of equity in your car is exempt under Illinois law. Also, most retirement savings and unemployment compensation is exempt also. There are also many other categories of exemptions allowed by the state, in addition to everyone's $4,000 "wild-card" exemption. The "wild-card" exemption can be used for any assets or accounts the debtor holds, and those assets will be protected from the bankruptcy proceedings up to $4,000 worth of value. There are several different ways debtors can protect their assets from creditors, so contact one of our bankruptcy lawyers today in order to learn more.

WCZ
http://www.westmontattorneys.com

THE DIFFERENCE BETWEEN A CHAPTER 7 AND CHAPTER 13 BANKRUPTCY

Many of the potential clients I receive calls from do not understand the differences between a Chapter 7 and Chapter 13 bankruptcy, nor which one would benefit them more. I would say in at least 95% of cases, a Chapter 7 is more beneficial to an individual debtor. A Chapter 7 bankruptcy offers a complete discharge of all debts that are allowed to be included by the courts, meaning, the debtor will no longer be liable to any of the creditors in the cases. In a Chapter 13 bankruptcy, a debtor agrees to repay as much of the debts as they can over a few years, at the end of which, any outstanding balance will be discharged. Many people wonder why anyone would ever file a Chapter 13 bankruptcy, given the greater benefits of a Chapter 7, however, in some circumstances, filing a Chapter 13 may be the debtor's only choice. In order to qualify for a Chapter 7 bankruptcy, your annual income needs to be under a certain level, otherwise, you cannot file. In addition, debtors with assets above the exemtpion limit, or who are behind on their house payments, but wish to catch up, can use a Chapter 13 to retain possession of their house and bring their mortgage current. Finally, some debts can be included in a Chapter 13 bankruptcy that cannot be included in a Chapter 7. Contact our law office today to learn if you qualify for Chapter 7 bankruptcy and which option would serve you properly.

WCZ
http://www.westmontattorneys.com/