Confusing Bk and judgment

Posted by Taziblue (68.219.115.105) on January 23, 2004 at 22:02:38:

In Reply to: Taz- BK bank records posted by Carolyn on January 23, 2004 at 13:53:24:

I think you may be getting mixed up between the two. Many people have been pushed to bk due to a judgment. However, the rules are different.

The BK court can and may look at your spending in the period prior to the bk and reverse fraudlent transfers. However, you can continue to pay your bills, and so on. This is intended to stop people from running up huge debts and then discharging them in bk.

Once a creditor gets a judgment and the time for filing an appeal has expired (different in every state) then they can record the judgment and try to collect it. They can ask for copies of your bank statements for the last three months- they are looking for money outside your job. They can not challenge your spending.

By contrast, the bk court could reverse transfer of money or property if it is deemed to be fraudulent.

IF you file bankruptcy, you are allowed to claim all your expenses. See earlier post from LadynRed that lists all the expenses you can take.

If you decide to file bk, find a really good lawyer and let the expert file for you. It can be tricky to navigate.

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