As most of the information out there talks about joint property and debts being affected, many individuals think they can just transfer property to their spouse’s name to solve the issue. Unfortunately, it’s not so simple. In most cases, a judge will reverse the transfer, especially if it is apparent that it was done to evade creditors. If you are unsure of what you can and can’t do and what will happen when you file, you can reach out to an experienced bankruptcy attorney for help. They can guide you through the process to work towards the best possible outcome for you and your family.

What Happens to Our Property When I File for Bankruptcy?

Before we jump specifically into what happens when you transfer property, let’s first clarify the ways that property can be affected. In most situations, your bankruptcy will not affect property that is owned separately by your spouse. However, anything jointly owned is not necessarily safe, and how it is treated will depend on whether you live in a common-law or community property state.

Common-Law Property

Indiana is a common law property state, not community property. This means that any property your spouse owns separately in their name usually is not at risk. However, any property owned jointly is considered part of your bankruptcy estate. If you do not have enough exemptions to cover these assets, they can be taken and liquidated in a Chapter 7 bankruptcy. If the property is taken, the trustee responsible for selling the property to pay your creditors will pay your spouse the value of their interest in the property. In Chapter 13 bankruptcy, non-exempt interest in joint property affects the percentage of debt that you pay back to unsecured creditors and there is no liquidation of the property.

What Happens to Property Transfers When I File for Bankruptcy?

Even though common law property states do not typically include your spouse’s separately owned property in the bankruptcy estate, there are some situations when their property can still be affected. Property transfers, for example, are still susceptible to being reversed and taken.

Transfers Can Be Reversed

Large item transfers, such as a car, a house, a sizeable financial account, or any other significant property, are at risk of being reversed in a bankruptcy case by a judge. This is because when transfers like this occur, judges know that it is done to avoid the property being taken by creditors. Transfers made right before you file for bankruptcy will seem particularly suspicious, but even transfers made 2 to 4 years previously still have a high chance of being reversed.

Most people do not plan to file for bankruptcy years in advance. However, on the off chance that you do think it might be something you’ll have to do, you can transfer the property four years or more ahead of time, and it may reduce the likelihood of a reversal. In the rare case where a judge still attempts to reverse a transfer made four or more years previously, it may be necessary to work with an attorney to fight the reversal of the property. Even before you make a transfer, speaking with an attorney is wise. These situations are very complex, and you can easily lose your property entirely if you are not careful.

What About Non-Traditional Transfers?

Non-traditional transfers are situations that might not seem like a blatant transfer of ownership on an asset but may still be considered a transfer and reversed in the case of bankruptcy. For example, if you and your spouse receive joint-funds but invest in a property your spouse owns separately, a judge might still view that as a transfer. Or, perhaps you sell a property that was owned jointly and then buy a new property in your spouse’s name only—that can be viewed as a transfer as well. Even if these “transfers” were done without the intention of evading creditors and were decisions made before you were even considering bankruptcy, they might still be seen as assets and included in the bankruptcy estate.

How Sawin & Shea LLC Can Help

Filing for bankruptcy is a stressful and challenging process. We understand how devastating losing property to creditors can be in these cases. At Sawin & Shea, we believe in providing compassionate and understanding representation to all of our clients and are determined to help you achieve the best possible outcome. Our attorneys specialize in bankruptcy cases and are here to help you through the process every step of the way.

Contact us at 317-759-1483 or send us an email for a free consultation today!

The post Can I Put My Property in My Spouse’s Name and File for Bankruptcy? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Before you file for Chapter 7 or 13 bankruptcy, you may begin to wonder what your life will be like after your bankruptcy plan takes effect. What’s your financial outlook? Will you have enough money to cover your basic living expenses? How will the bankruptcy affect your credit score? Will you ever be able to buy a house again? These are all natural questions and concerns. Let’s take a look at how a bankruptcy plan typically affects someone’s life, so you can picture it more clearly.

How Will My Life Change After Bankruptcy?

The first thing you’ll notice is that the collection calls stop. Creditors are required to stop contacting you as soon as a bankruptcy case is filed. Because bankruptcy gives you a fresh financial start, you’ll also notice that for the first time in a long while, you’re actually able to pay your monthly expenses without getting overwhelmed.

A bankruptcy deals with your debt and leaves you with something more manageable to handle. This will probably make you feel less stressed, more capable of managing your finances, and more optimistic about your financial future.

Will Anyone Know That I Went Through a Bankruptcy?

This is a great question bankruptcy attorneys hear frequently: Will my friends/family know I declared bankruptcy? In most cases, no. However, bankruptcy filings are a matter of public record. The days of newspapers printing bankruptcy filing information are largely gone. So beyond your creditors, bankruptcy lawyers, and the court officials, few people will know about your bankruptcy unless you tell them.

The only exceptions would be people who have given you loans, people who have sued you, or an employer if you had a financial issue like a garnishment. But even if these people find out, it’s against the law to discriminate against you due to bankruptcy. It’s not something to be embarrassed about. It’s a positive step toward financial stability.

Will the Bankruptcy Ruin My Credit Forever?

Bankruptcy doesn’t ruin your credit in the long run. Actually, in many cases it actually improves your credit score. That’s why people who have completed bankruptcy plans often find a steady stream of new credit offers in their mailboxes. Bankruptcy wipes the slate clean so you can start over and make new choices.

Nearly 780,000 people in the U.S. filed for bankruptcy last year to get a fresh start and improve their credit. If you’re wondering about the timeframe, it typically takes somewhere between 3-4 months from filing to discharge for a Chapter 7 bankruptcy and 3-5 years for Chapter 13. After the bankruptcy, your credit score should begin to rise.

Will I Ever Be Able to Buy a House or Car Again?

There aren’t any laws that prevent you from buying a house or car after bankruptcy. In fact, after bankruptcy your credit score will improve and your debt to income ratio will look much better to the credit bureaus. That’s good news for getting a mortgage or car loan. Some government programs and private lenders do require waiting periods after a bankruptcy.

However, the lending market is very competitive, and you’ll likely be able to find a lender that will work with you after a bankruptcy. Remember, by choosing bankruptcy you are taking a responsible step toward better management of your finances. That’s a good thing for your credit, and a good thing for your future.

Sawin & Shea – Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of the overwhelming debt and advise you on life after bankruptcy.  We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 or send an email for a free consultation. We are ready to help.

Sawin & Shea – Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of the overwhelming debt and advise you on life after bankruptcy.  We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 or send an email for a free consultation. We are ready to help.

Video Transcript

One question that my clients generally have during the bankruptcy process is what’s life going to be like after bankruptcy? Bankruptcy gives you a fresh start. It helps you build a platform where you can start making your financial life better away from all the stress of collection calls, harassment and lawsuits. It’s a way you can start getting back on track with your financial life, so you can get things like mortgages and car loans at better interest rates on the future. Please give us a call today at 317-759-1483. We offer a free consultation. if you’re having problems with your debts. We can help you get back on track.

The post [Video] What is Life Like After Filing for a Chapter 7 or 13 Bankruptcy? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.

Filing for bankruptcy requires a proactive mindset. It’s not something that happens to you, it’s something you make happen. That’s why it’s important to prepare for bankruptcy and ensure you’re ready for everything to come. You’ll need to educate yourself about bankruptcy terms, fill out specialized forms and decide between Chapter 7 and Chapter 13 filing. The more prepared you are for the bankruptcy process, the easier and faster it will be to get back on the road to financial stability.

What’s the First Step in Preparing for Bankruptcy?

Start off on the right foot by getting reliable advice about the bankruptcy process. While your friends and family may share their opinions with good intentions, there’s no substitute for the legal advice of a reputable bankruptcy attorney. A bankruptcy attorney is educated on the detailed ins-and-outs of bankruptcy preparation and can help you avoid mistakes and confusion in filing. For example, do you know that to file a Chapter 7 you’ll need to pass an income based “means test” to determine whether you even qualify for Chapter 7 bankruptcy? This is a key decision factor in choosing Chapter 7 versus Chapter 13, which affects the entire process.

What are Some Common Pitfalls When Preparing for Bankruptcy?

As you prepare for bankruptcy, watch out for risks that can complicate the process. First, it’s very important to watch the amounts of money in your banking and other financial accounts at the time of filing. If the bankruptcy trustee seizes money in your accounts, it could cause a big problem – especially if you’ve written outstanding checks. Work with your bankruptcy attorney to maintain control of your accounts. Also, beware of bank set-offs, which allow your bank to automatically deduct amounts from your account that you owe on loans. A similar situation can also occur with utility companies, which may deplete a deposit amount to cover balances due – however, by law, utility companies can’t cut off your services if you fail to pay during the protected period of bankruptcy. 

Should I Stop Making Payments, Since I’m Going to File for Bankruptcy?

This is a very common question, but the answer isn’t simple. It depends on the type of debt you have, how soon you’re going to file, and whether you’ll be going with Chapter 7 or Chapter 13. Certain types of debt can’t be erased by bankruptcy – like child support or alimony payments, student loan debt and some back taxes. Continue to pay down those debts. But for things like medical bills, credit cards and unsecured loans, continuing to pay at this point may be a waste of money. If you have automatic payments coming out of your bank account, talk to your attorney about stopping those. For secured loans, like mortgages and car loans, it depends on whether you want to keep the property and how you plan to file. Get legal advice on which payments you should continue to make as you file for bankruptcy, because each situation is unique.

How Do I Notify Companies That I’m Filing for Bankruptcy?

In general, it’s okay to let creditors know you have hired an attorney to file for bankruptcy. As soon as you have filed and have a bankruptcy case number from the court, you can certainly let creditors know you have filed. If they call more than once, contact your attorney right away. At that point, your status of being in bankruptcy requires creditors to stop phone calls and collections efforts. They will be forced to play by the rules of bankruptcy. Your bankruptcy attorney can guide you through the notification process to ensure that it results in the best financial picture possible for your future.

Sawin & Shea – Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of the overwhelming debt and advise you on life after bankruptcy.  We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 or send an email for a free consultation. We are ready to help.

The post Can I Prepare for Bankruptcy? appeared first on Indianapolis Bankruptcy Attorneys of Sawin & Shea.