Can I Transfer Property Before Filing Bankruptcy in Fort Lauderdale?
How Does Fort Lauderdale Chapter 7 Bankruptcy Treat Property in Your Bankruptcy Estate?
When you file for Chapter 7 bankruptcy in Pembroke Pines or Miranar, a “bankruptcy estate” is created that is comprised of everything you own that is not covered by a Florida bankruptcy exemption (protection). The bankruptcy estate comes under the bankruptcy court’s authority upon filing. Florida bankruptcy law has exemptions for certain items such as: pensions, tuition and individual education accounts, and if you are married but filing bankruptcy alone, property you own with a spouse as tenants by the entirety is usually exempt. All the property that is subject to the bankruptcy court’s jurisdiction is called the “bankruptcy estate.” In addition to the property you own when you file bankruptcy, your bankruptcy estate also includes property you used to own but transferred to someone else before filing bankruptcy. Property you acquire after filing generally isn’t part of your estate, although exceptions apply to certain types of property you acquire within six months after filing.
The Ft Lauderdale Chapter 7 bankruptcy trustee has a lot of interest in your bankruptcy estate because the trustee receives a sizeable commission on any property that can be taken from your estate and sold to come up with some money for your unsecured creditors. Only property from which the trustee can realize a profit will be sold; you usually won’t lose property that is worth very little or is protected by an exemption. The word “usually” is used because Chapter 7 trustees in South Florida are known to be quite aggressive in making claim to property that has little equity available but they know you will want to keep it. Some are well known to overestimate the value of the property in order to have you pay them to keep it. Usually, it’s cheaper to pay them than to incur the legal fees required to fight them. They know this and, as I’m fond of reminding people, law is a business. Many times, it’s cheaper and less stressful to file a Davie Chapter 13 bankruptcy even though you qualify for a Coral Springs Chapter 7 bankruptcy because of over-zealous Chapter 7 bankruptcy trustees in South Florida. An experienced Fort Lauderdale bankruptcy attorney knows the bankruptcy trustees and can guide you towards the bankruptcy chapter that will give you the financial fresh start that you seek without the stress of aggressive Chapter 7 trustees.
Contact us today for a free bankruptcy law consultation. You will find out that you are not at the mercy of your creditors! You have options - find out what they are today!