Bankruptcy Truth About Hiding Property, Losing Your Job And Filing Multiple Times. |
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| By: Christy Thompson | ||||
This question is asked all the time. How it comes up is people will sit down with a lawyer and theyll say, Well, I have a car and my wife has a car. Then our son who lives at home with us, he also has a car. So they do the math, and we figure out that both the husbands and wifes cars are worth about $5,000 apiece. In Arizona you can have vehicles in a bankruptcy for two individuals up to two vehicles worth up to a total of $10,000. Well, this is a bit of a dilemma because their sons car is paid off and its titled to them, as well. So that car is not protected in bankruptcy. Typically when they are given that explanation, most people will say, Well, thats okay. Ill just go ahead and change the title. There lies the problem. You dont have the right to do that. The court looks back and reviews all of the assets that you have prior to filing bankruptcy and theyll ask you, Did you receive fair market value for that car when you sold it to your sonwhen you changed title? And, of course, the answer was no. They didnt have the ability to pay them. We do have solutions for that. But a solution is not to simply change title or not change title to a piece of real estate that cant be protected. So the answer to your question is, no, you should never change title to your property by hiding or giving it away before you file. Its actually a crime in bankruptcy. The court trustee who will be appointed to your case has the right to actually take the property back from the individual who you gave it to. So both you and the person who you gave it to can get in trouble in bankruptcy. There are solutions for that, but hiding it or giving it away is not the solution. Is it true that I will lose my job if I file bankruptcy? Absolutely not. People worry about that all the time. Theyre always concerned, Is my employer going to find out? The answer is no. Your employer is not going to find out. Also the bankruptcy code, which is what everyone needs to follow in bankruptcy, requires an employer not to fire someone in retaliation for filing bankruptcy. So first of all, your employer is never notified of your bankruptcy. The only way they would know is if you told them. Secondly, if they were to find out and they thought of firing you for bankruptcy, then they also could be in trouble for doing so. So no, you wont lose your job. Is it true that, if I filed for bankruptcy before, I cant file again? Thats not true. People file bankruptcies more than once Theres a time line there. You can only file a Chapter 7 every eight years. However, if you had gotten yourself in trouble and were facing something, you may have filed a Chapter 7 and then six years later you could file a Chapter 13. So you can file a bankruptcy more than once. There certainly is the possibility of doing so. |
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| Article Source: http://yourfinance.co.za | ||||
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