Are Charitable Gifts Fraudulent Transfers?
Charitable donations made during the two years before filing bankruptcy may fall within a safe haven of not being fraudulent transfers.
Fraudulent Transfers without the Actual Intent to Defraud
Selling or giving away something innocently, without trying to hurt your creditors, could still give the trustee the right to get it back.
Introducing Fraudulent Transfers
"Fraudulent transfers" have similarities to "preferences." They are both worth understanding because they can cause unnecessary hassles.
Using “Preference” Law to Pay a Necessary Debt
You can put a "preferential payment" to work for you if you owe a "priority" debt--back child or spousal support, or recent income taxes.
Avoiding the “Preference” Problem
Prevent your trustee from giving you a big headache if you paid a debt to a friend or relative during the year before filing bankruptcy.
The “Preference” Problem
Avoid the frustrating surprise of having one your friendly creditors be challenged by your bankruptcy trustee with a preference action.
The Practicalities of “Preferences”
Preferences can be dangerous but can also present potential opportunities. So although not all that common, they're worth knowing about.
Understanding “Preferences”
Your trustee might be able to require a creditor to pay the trustee money you'd paid the creditor. Sometimes that's good; sometimes not.
Adversary Proceedings by the Trustee
Usually it's not hard to avoid getting into a dispute with your trustee. But you need to know the law and follow it.
The Bankruptcy Judge, U.S. Trustee, and Chapter 7 and 13 Trustees
Your bankruptcy case makes more sense if you know the roles of the people involved, including the judge and the various trustees.
Permanently Write Off Debts in Bankruptcy
The main goal of bankruptcy is often to write off--"discharge"--your debts. Here's how it works in Chapter 7 "straight bankruptcy."
Recovered Assets from “Fraudulent Transfers”
Which assets that you sell or give away before filing bankruptcy will be a problem, and which won't?
Special Assets–An Inheritance
Inheritances and life insurance proceeds have a special rule when it comes to the timing of your bankruptcy filing.
“Pre-Petition” and “Post-Petition” Assets in Chapter 7
Pre-petition assets are "property of the bankruptcy estate," part of your Chapter 7 case. Post-petition assets are not.
“Pre-Petition” and “Post-Petition” Debts in Chapter 7
The timing of your Chapter 7 "straight bankruptcy" case can make a huge difference in dealing with your debts.
