Kentucky Bankruptcy Chapters 7 13

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Are you worried about Chapter 7 or Chapter 13 Bankruptcy fraud?  

There are two types of Bankruptcy Fraud that can arise in either a Chapter 7 or Chapter 13 bankruptcy.  The first type of bankruptcy fraud is to make certain charges on an account within 60 days of filing in a Chapter 7.  If a person charges over 1000 dollars on their charge card or other accounts within 60 days of filing the court presumes that you knew and planned incurring the debt just before filing a Chapter 7.  This becomes 750 within 90 or 500 if it is a cash advance or luxury item after 10-2005.  The penalty for making a debt so close to filing is that you may have to pay for that entire account anyway.  Since a Chapter 13 pays back the debt anyway this may not be a penalty in a Chapter 13.  If you have made such a charge in a Chapter 7 case you should wait so that the court does not presume that the debt was incurred by fraud.  However the court may use a 12 factor test to determine if it was fraudulent.

The second type of Chapter 7 or 13 bankruptcy fraud involves any transfer or deception to the court about assets in a bankruptcy case.  Strangely these "preferential transfers" include repossessions garnishments and foreclosures as well as a gift from the debtor to family members.  Whenever a garnishment, foreclosure or repossession happens it is a transfer of an asset without the bank giving anything of value to the debtor.  In some cases these creditors are using the garnishments, foreclosures and repossessions to steal property from the bankruptcy court, Chapter 7 or Chapter 13 debtor or Bankruptcy Trustee. 

It is important to disclose any transfer to your creditors and all of your assets to the bankruptcy court and your attorney.  If you will tell your bankruptcy attorney about any transfer of any asset and all of your assets he will be able to plan with you so that you can recover and keep most or all of your property.  Some persons may be tempted to not report or hide assets or to transfer them to family members however the bankruptcy court can reach back up to one year to undo these transfers to family members or others if you were not paid full value for what the bankruptcy Debtor gave away.   Hiding assets is a federal crime.  

The Bankruptcy Manual fully discusses bankruptcy fraud.   Download your free copy. Tell your attorney about all of your assets and about any transfer of any property worth over 600 dollars.   Often much of this can be avoided if you know the Chapter 7 and Chapter 13 rules and if you plan your bankruptcy so that you keep as much as possible.   

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