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Does actual intent need to be proven in order to be held responsible for a fraudulent transfer prior to a bankruptcy filing. A trustee may avoid any transfer of an interest of the debtor in property, or any obligation incurred by the debtor, that was made or incurred on or within one year before the date of filing of the petition. Actual intent does not need to be proven by direct evidence or by an admission. There are instances when circumstantial evidence, evidence where one can infer or dra
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If you are a co-signer of a debt you may not have to pay back the debt or obligation. It all depends on whether the debt is dischargeable. If the debt is considered a dischargeable debt then you will not be responsible for the debt and it will be wiped out by the bankruptcy filing. For example, if you co-signed a credit card application and the credit card debt is identified in the bankruptcy petition, it will most likely be discharged. It is important to remember that the other person who co-
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In 1992, the United States Supreme Court ruled that qualified retirement plans under ERISA (the Employee Retirement Income Security Act) are not to be made part of the bankruptcy estate and therefore are exempt. The ruling puts retirement funds outside the jurisdiction of the bankruptcy court.
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An individual that is responsible for child support will not be able to avoid the financial obligation by seeking bankruptcy protection. Even though a debtor is filing bankruptcy for the protections afforded by the automatic stay. The automatic stay rule which prevents creditors and other debt collection entities from seeking money from borrowers does not apply to child support payments. If you are trying to collect from an ex-spouse, his or her bankruptcy filing will not protect him or her fr
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A foreclosure on your home can have a lasting impact on your credit score. According to the three major credit scoring agencies Equifax, Transunion, and Experian, a foreclosure shows up on a credit report for at least 10 years. Due to the down turn in the housing market, some alternative’s to foreclosure have recently been publicized. Some home owners that are looking to get out of their homes but owe more than the home is worth are resorting to a short sale. A short sale is an agreement with
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Have you ever wondered how long a bankruptcy stays on your credit report? According to the Federal Fair Credit Reporting Act, any bankruptcy filed can remain on your credit report for 10 years. However, some of the credit reporting agencies treat certain bankruptcy filings differently and therefore have different periods of time that a bankruptcy will be kept on a credit report. Most of the reporting agencies will keep a Chapter 7 bankruptcy on the report for 10 years b
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If you owe the IRS back taxes they may be dischargeable in a bankruptcy filing. However, not all tax debt will be discharged. The bankruptcy code sets forth specific criteria that must be met in order to have tax debt discharged in bankruptcy. Tax debts are associated with a particular year and a particular tax return. The five criteria outlined in the bankruptcy code are as follows: the due date for filing a tax return was a minimum of three years ago, the tax return was filed at least two yea
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The Sixth Circuit Court of Appeals recently released an opinion regarding a debtors denial of discharge due to the debtor fraudulently concealing property. A finding of fraudulent concealment must show that the debtor fraudulently concealed property of the estate after the date of the filing of the petition. The case In re: Doneta M. Beckham , the Court denied Ms. Beckham’s discharge for the sale of property after the filing of her bankruptcy petition and her failure to report the proceeds of
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The primary goal of filing a Chapter 7 bankruptcy petition is to obtain a discharge from the Court giving the debtor the “fresh start”. The “fresh start” is the motivation behind most bankruptcy filings. Usually there is no proceeding brought challenging the debtor's right to discharge, however, the bankruptcy code provides a basis and grounds for such a challenge. A discharge may be denied by the Court if one of the following is shown to be present: 1. a transfer or concealment of property wit
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There are two types of fraudulent transfers. Actual fraud involves the intent to defraud creditors and constructive fraud involves a transfer which is made for grossly inadequate consideration. Actual fraud is committed when a transfer is made within one year before the date of the filing of a bankruptcy petition and is made with the intent to hinder or defraud a creditor. Constructive fraud requires that in exchange for the transfer, the debtor received less than reasonably equivalent value an
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The short answer is yes. The bankruptcy code provides a list of exemptions that allow a debtor to protect certain property from being included in the bankruptcy estate. The code also has a provision that allows a creditor or trustee to object to an exemption that they believe is improperly claimed. The objection must be filed with the court no later than 30 days after the meeting of creditors and must be in writing. The creditor or trustee may request an extension of the 30 days but it must be
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If a married person files for bankruptcy and does not include his/her spouse in the filing, the income earned by the nonfiling spouse must be included in the means test calculation. According to the bankruptcy code the spouse's income must be accounted for to the extent that the nonfiling spouse contributes on a regular basis to the household expenses of the debtor and the debtor's dependents.
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