Chapter 7 Bankruptcy
Abandonment of Debtor’s Property in Chapter 7 Cases
In Chapter 7 bankruptcy cases debtors enjoy certain protections – such as the automatic stay which protects the debtor’s property from creditors and lawsuits and other actions – but also gives up certain control over the estate’s assets. Upon filing the Chapter 7 bankruptcy action, all of a debtor’s property becomes part of the estate.…
Read MoreAutomatic Stay Key Feature of Chapter 7 Bankruptcy
One of the key protections afforded to debtors who file Chapter 7 bankruptcy actions is the automatic stay. Upon filing a Chapter 7 bankruptcy case, the court, without prompting from interested parties, issues an automatic stay under § 362(a) of the bankruptcy code. The automatic stay immediately prohibits any creditors, litigants or other claimants from…
Read MoreIn Chapter 7 Bankruptcy Time Limits Conflict with Notice Provisions
When a Debtor files a Chapter 7 bankruptcy petition, creditors and other interested parties must meet certain time limits in order to challenge discharges of certain debts and additional developments in the case. But, in some instances, whether these time limitations should apply, may depend on whether these creditors and interested parties have sufficient notice…
Read MoreHorse Trading That May be Non-Dischargeable under Chapter 7
For a Chapter 7 bankruptcy debtor, multiple horse trades and a subsequent filing of a bankruptcy petition may not be enough to avoid having to reimburse a dissatisfied rodeo roper. Mr. Raymond Siggins sold a horse named “IV” to Benjamin Bates who intended to ride IV in roping competitions. When the horse was found by…
Read MoreVoiding Preferential Transfers in Chapter 7 Bankruptcy Cases
The federal bankruptcy code contains provisions which seek to prevent claims from creditors based on preferential transfers made while the debtor was already insolvent and had reason to believe they would be filing for bankruptcy protection. A recent decision from the United States Bankruptcy Court illustrates how a court can carefully determine if a transfer…
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