May 29, 2024 By:
Almost anyone can file a Chapter 13 bankruptcy, which will take a lot of the pressure off you as you renegotiate your outstanding debt. You may, however, qualify to permanently discharge some of your debts under Chapter 7, but you’ll need to submit to the “means test” to determine your eligibility.
You may have borrowed money from parents, siblings, or a benevolent uncle. It’s natural to want to keep them out of the whole bankruptcy process by paying them back what you owe. If you do, and the bankruptcy court learns of it, it may be considered a “preference,” and the court may require such payments to be returned.
By the same token, don’t give valuable property to a friend or family member so that it’s no longer part of your bankruptcy estate. You can typically sell your property to someone you know, provided you do so at fair market value. Any other transfer of personal property to a close friend or family member may be construed as fraudulent by the court.
Any purchases made within 75 days of your filing will carry what is called the “presumption of abuse.” If the purchases, including those made with a credit card, are considered to be for anything other than essential needs, the court may prevent their discharge and may even deem them to be evidence of fraud.
Let us help you take the right steps and make good decisions when filing for personal bankruptcy protection. At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Kaufman County, Rockwall County, Collin County, Dallas County, Hunt County, and the surrounding counties.