Bankruptcy

When Does Bankruptcy End And Life Begin?

By L. Jed Berliner, Springfield & Marlborough, MA Ban

All right !!!  You’ve done some hard work, gone through lots of worry and fretting, and now that light is appearing at the end of the tunnel.  Congratulations!  Well done.

Maybe your father wants to buy you a new car, or you want to look for a better job.  When can you begin your fresh start?

In a Chapter 7 case, I recommend waiting until after the trustee meeting.  Technically the bankruptcy facts and issues are all fixed on the filing date (excepting deaths up to six months later which lead to an inheritance), but you could be waiving a red flag for the trustee to investigate if you suddenly acquire new assets, even from a family gift. 

More attention is required in a Chapter 13 case, where you’re making payments for three to five years.  You creditors may or may have rights to newly acquired assets.  This is something to discuss with your attorney.  You can use a car in your father’s name, and you can discuss increased expenses to offset higher income from a new job.

Good job, I say.  Well done.

Full post as published by Bankruptcy Law Network on January 25, 2010 (boomark / email).