This is tricky but can be answered easily. All depends on wether trustee has access to your Income tax report. if he\she doesn't, then they probably won't be the wiser and my suggestion would be don't tell them, hide it in a sock or under your pillow. Be careful about depositing the money b\c the trustee may be able to see current balances and have acces. In conclusion, I don't think the trustee will be doing these types of things unless you stop monthly payments to them in a structured repayment that has already been put in place. But you could use the money to repay percentage required by trustee. After all there not asking you to repay 100% are they? Only a small percent. Pay it off and be done with it. Tell them you borrowed the money from a relative.
It is rare that a bankruptcy trustee really investigates a debtor. There have to be a large amount of questionable assets or, like in a Chapter 11, types of assets that would send a trustee to your house. When they do, they look into bank accounts and physical assets such as furniture, houses, cars and even clothes.
Although most debtors keep all their property after filing a Chapter 13 bankruptcy, debtors must file exemptions when applying for this type of bankruptcy just like they do when they file for Chapter 7 bankruptcy. Filing exemptions in a Chapter 13 bankruptcy is for the benefit of creditors rather than the debtor himself. The exemptions inform the creditor of how much she is entitled to and allows her to compare the settlement of the case with the settlement the creditor would receive if the debtor filed Chapter 7 bankruptcy instead.Best Interest of Creditors TestU.S. bankruptcy law requires Chapter 13 bankruptcy applications to pass the "best interest of creditors test." Creditors involved in a Chapter 13 bankruptcy must receive at least as much from the bankruptcy as they would if the debtor filed Chapter 7 bankruptcy instead. The bankruptcy trustee performs this test by deducting the debtor's exemptions from the full value of the estate to determine how much the estate would be worth if the debtor filed Chapter 7 bankruptcy. Creditors may receive more from Chapter 13 than they would from Chapter 7, but they may not receive less from Chapter 13.Determining Payment AmountChapter 13 exemptions, or more specifically, the best interest of creditors test, are also used to determine how much the debtor must pay over the lifetime of the plan. To make this determination, the bankruptcy trustee compares three numbers. The best interest of creditors test, or the non-exempt value of the estate minus administrative costs, is one of these three numbers. The total amount of priority claims, such as alimony, child support and back taxes owed, is another number the bankruptcy trustee looks at, as is the debtor's disposable income, or income after payroll taxes each pay period. The bankruptcy trustee takes the biggest of these numbers and divides it by the life of the plan to determine how much the debtor must pay each month.ConsiderationsChapter 13 bankruptcy may be attractive to some debtors because debtors are at low risk of losing their property through this arrangement and there are no income limitations on this type of bankruptcy. However, debtors cant file for Chapter 13 bankruptcy if they have such large exemptions that the bankruptcy will fail the best interest of creditors test. In addition, Chapter 13 bankruptcy negatively affects the debtor's credit for seven years and requires debtors to pay the bankruptcy trustee on a monthly basis.
You can, but you may have to turn it over to the trustee if you did not list the claim in your list of assets and your Statement of Financial Affairs. If the trustee abandoned the claim, the settlement is yours. If you failed to list it, not only can you lose the settlement, you may be subject to federal criminal charges for lying on your bankruptcy forms, which you signed under oath.
Not usually. Once the plan is approved, that's it. There are 2 usual exceptions, if you inherit a large amount or win a lottery. Tax refunds, which are not employment income, often have to be sent to the trustee. It will shorten your plan completion time.
Yes, even for 6 months after discharge. Depending on the source of the money, the trustee may have no way to take it, but not reporting it will leave you open to challenge later on. Ask your lawyer or get an experienced bankruptcy lawyer.
You would first want to find an attorney to represent you, then start referring creditors to the attorney. Then file-or if you have a lawyer, he or she will do it-a bankruptcy petition for whichever chapter you have decided on/qualify for. Then you will meet with all of your creditors, your attorney, and possibly a bankruptcy trustee. If you are filing on your own, you will want to do a large amount of research on how to go through this process. The article below goes into more detail on the process.
By law, the debtor has a maximum of 30 days to begin the payments. Even if the plan is as yet unconfirmed by the court, the debtor must begin. If any adjustments to the plan occur later, the payments must be adjusted. Now, we come to the scenario: what happens if a payment is missed?The court can dismiss the petition. The debtor loses the automatic stay. The creditors can begin collection procedures. The creditors can foreclose on loans. The creditors can request account seizures.By law, the debtor can petition the courts to maintain the bankruptcy, or re-file (at debtor cost). But, as always, communication, communication, communication is the greatest tool a debtor has with his or her lawyer and the trustee. As soon as the debtor knows that a payment to the trustee is going to be missed or fall short in amount, the debtor must contact both the lawyer and the trustee. The debtor will do well to have a plan to catch up very quickly. Does the trustee have to accommodate the debtor? Not in the least. Might the trustee somehow accommodate the debtor? Yes. Debtors must realize that the trustee is obligated to the courts for exemplary execution of assigned tasks. The trustee is NOT on the debtor's side. Again, here is where the trust meets reality. The debtor submitted and agreed to the plan. Failure is really not an option.No Matches Found. Please try your search again.More On This TopicWhat happens if I get a raise at work during a bankruptcy?Will Social Security Disability benefits be considered income in a bankruptcy plan?How long do I have to live in my house after filing bankruptcy?Can I File a Civil Suit Against Someone Who Filed BankruptcyDoes Filing Bankruptcy Release You From a Small Claims Judgment?What is a Mortage Cram Down for Rental Properties?Can a Consent Judgment be Wiped Out in Bankruptcy?Are the fees I paid my bankruptcy lawyer and trustee tax deductible?When A Company Files for Chapter 11 Bankruptcy Court Protection What Happens to the Stock?If a company files bankruptcy, will you be given unemployment benefits?Related Legal TermsCHAPTER 7, BANKRUPTCY, CHAPTER 13, INDEFINITE PAYMENT, CHAPTER 11, IMPUTATION OF PAYMENT, CHAPTER SEVEN, INVOLUNTARY BANKRUPTCY, ADJUDICATION OF BANKRUPTCY, CASE DISMISSED Writing Off or "Charging Off" Your Second Mortgage & Putting it into BankruptcyGetting a Large Personal Loan When Having Bad CreditComments are closed.Featuring Black's Law DictionaryBlack's Law Dictionary For MobileRelatedWriting Off or "Charging Off" Your Second Mortgage & Putting it into BankruptcyCan My Ex-spouse File for Bankruptcy After Our Divorce?Can a DUI Conviction Affect You After Moving to a Different State?How To File Taxes When Separated or DivorcedDoes Unemployment Income Count In a Bankruptcy Case?Getting a Large Personal Loan When Having Bad CreditDisclaimerLaw Dictionary: What Happens When Chapter 13 Bankruptcy is Dismissed for Non-Payment?
i was in a car acciadent then i filed bank ruptsy now i am comming in to a money settlment do i have to report it to the trustee
In most cases you can, I had this same issue filing a chapter 7 and someone wants to purchase my home, I contacted my bankruptcy attorney and he said as long as there is not a lot of equity like $4000 or less than it is ok, but the trustee will be notified. I would advise anyone to wait if you have a large amount of equity.
Yes, provided you meet the qualifications. Bankruptcy is a federal court process. It is designed to help consumers and businesses eliminate debt or repay debts under the protection of the bankruptcy court. Chapter 11 bankruptcy is a type of reorganization bankruptcy, like Chapter 13. Chapter 11 is available to individuals, corporations, and partnerships. It has no limits on the amount of debt, again, like Chapter 13. Chapter 11 is the typical bankruptcy choice for large businesses seeking to restructure their debt and become profitable again. Chapter 11 is the most flexible of all the bankruptcy chapters, which makes it generally more expensive to the debtor. The rate of successful reorganizations is very low.
There are MAJOR differences between the three types of bankruptcy that demand you familiarize yourself with them and decide which, if any, is the best option for you. Proceedings under Chapter 7, known as straight bankruptcy, involve taking most of the borrower's property. The court then appoints a trustee to sell off the assets and distribute the cash among the creditors. Proceedings under Chapter 13, known as wage earner's bankruptcy, involve the borrower proposing a plan for repaying a portion of the debt in installments from the borrower's income. Chapter 11 is a type of reorganization bankruptcy, like Chapter 13. Chapter 11 is available to individuals, corporations, and partnerships. It has no limits on the amount of debt, again, like Chapter 13. Chapter 11 is the typical bankruptcy choice for large businesses seeking to restructure their debt and become profitable again. Chapter 11 is the most flexible of all the bankruptcy chapters, which makes it generally more expensive to the debtor. The rate of successful reorganizations is very low.
There is no limit to the debt you owe for filing bankruptcy. Chapter 13 may not be available if you owe a large amount. Since the amount changes from time to time, you will have to look it up on your bankruptcy court's website.
Here is advice: * If I were you, I would get an attorneys advice. I do know that after your bankruptcy is discharged and final, if you receive a large amount of money within 6 months after, you must pay it on your debts. Although, Im not sure if this pertains to law suit money. * In most cases, your claim for damages would become part of the bankruptcy in a Chapter 7 and you would not longer have standing to pursue the lawsuit. The trustee has the option of taking over and applying the proceeds to your debt, letting you pursue the lawsuit and simply place a lien on th proceeds or abandoning the asset and letting you keep all of the money. Any claim or potential claim must be disclosed in the documents you file for bankruptcy. The claim is then evaluated by the trustee and either abandoned by the trustee or it becomes part of the bankruptcy estate and is not yours any more. You may be able to exempt all or some of the potential payment from the claim, so be sure to discuss this with you bankruptcy lawyer.
Yes, Chapter 11 bankruptcy is available to individuals, corporations, and partnerships. It has no limits on the amount of debt, again, like Chapter 13. Chapter 11 is the typical bankruptcy choice for large businesses seeking to restructure their debt and become profitable again. Chapter 11 is the most flexible of all the bankruptcy chapters, which makes it generally more expensive to the debtor. You need to keep in mind that the rate of successful reorganizations is very low.
Your bankruptcy trustee has the right to receive your share of the inheritance within 6 months of filing your case. The trustee has the right to receive it all. Typically what happens though is the trustee receives the full amount and then makes a determination of how much is needed to satisfy your estate and debts. If you receive more than is necessary to pay off your debts, you will get a refund. It can take some time though. In rare cases, the trustee may have you cut a check for the amount and you keep the difference. But normally trustees don't trust debtors to do this.
The amount does vary, but is very regulated by the UST and it is very fair to say that being a trustee is not a very well paying job. The exception of course may be when he is handling a very large case with lots of non-exempt assets to administer. This is the person who administers Chapter 7 cases. His role is to determine whether there are assets to liquidate; to review claims of exemption and the debtor's entitlement to a discharge. He is essentially a representative for the creditors as a group. He is appointed by the United States Trustee, an officer of the Department of Justice, who oversees his performance. He is not himself a government employee. Trustees are frequently lawyers or accountants. The trustee presides at the first meeting of creditors. He can file objections to claims of exemption or oppose the debtor's discharge, but he doesn't decide those questions. The judge decides disputed questions. More on role of bankruptcy judges. Trustees are paid in part from the filing fee paid to the court at the commencement of the case. Any compensation they receive above that is a fee based on the money they handle as part of the estate. If there are no funds in the estate at the end of the day, the trustee gets only his $60 per case. The Chapter 13 trustee is also a private individual appointed by the UST. He serves the same review function as a Chapter 7 trustee (that is, read the schedules and see if the case complies with the Bankruptcy Code and oppose matters that don't comply with the law.) He also serves as the disbursing agent for payments made by the debtor into the plan. Usually,one Chapter 13 trustee serves all the cases in his/her division or district. The trustee gets a small percentage of the funds that flow through the Chapter 13 case. That percentage is fixed by the UST after review of the Chapter 13 trustee's operating expenses. This trustee is a government employee whose job it is to appoint and oversee the Chapter 7 and Chapter 13 trustees. The UST has standing to appear before the court as an interested party. UST is charged with reviewing Chapter 7 cases for abuse or denial of discharge. Since the '05 amendments, they appear to be more active in this oversight role and more aggressive in trying to force cases into Chapter 13. They also take an oversight role in Chapter 11 cases, especially where there is no creditors committee.
There is no prohibition against renting property in a ch 7 bankruptcy. However, if you have a large amount of equity in the house, it might be sold to pay your creditors.
There are many stages to the bankruptcy process, each with differing conditionsa and consequences. Chapter 11 is very similar to chapter 13 however there are a few differences, the main one is that there is no limit to the amount of money owed by the debtor. This was a condition mainly concerning large companies however the limits have been extended to individuals as well.
Not a good idea, unless you have a very small amount left in it. The penalty (10%) and income taxes will have to be paid, and if it is a large amount, it will become an asset of the bankruptcy estate and the trustee will take it. It is exempt in the 401(k), but not in your pocket or bank account. You could probably amend your petition documents to exempt the amount if you have exemptions available, but you should discuss it with your attorney or get a bankruptcy attorney in your area to review this.
Maybe, but unlikely...the basic Q is was it done in anticipation of bankruptcy.
yes you can, chapter 7. as long as it wasn't a large amount recently.. within 3 or 4 months.. otherwise you have to wait
No. You can only claim debts that are in your name.The other person took the responsibility to allow you to use his/her card and they are liable.This answer is wrong. You can and should list the debt. List both the creditor and the person who let you use the card.You must list all debts you owe under penalty of perjury! Yes, even those you plan t pay. If there is a possibility someone may claim that you are liable, it is wise to list them even if are sure are not liableConsult a competent experience bankruptcy attorney as soon as you experience financial problems, not when you believe you might have to file. The potential costs of delay and errors can be large.
Always file for bankruptcy as soon after getting a large sum of money as you can.
Generally speaking a Trustee is empowered to settle an estate within the guidelines of the Trust (or will). His / Her, functions are described by the trust documents and can vary to a large degree.
A corporate trustee is exactly what the term implies: A trustee that is a corporation rather than a person. Although it will vary from state to state depending on that state's laws, a trustee may be any type of recognized legal entity such as a person or corporation. Sometimes corporations such as banks are made trustees of large trusts to take advantage of their expertise in investing and handling assets. Such a trustee will be referred to as a corporate trustee.