Posted: April 9, 2020
Typically, as long as the gift is modest in nature, it will not raise any red flags. When you file for Chapter 7 bankruptcy, a Trustee is immediately assigned to your case. One of the Trustee’s duties is to review and investigate your pre-petition financial affairs. Initially the Trustee will review the bankruptcy petition, schedules and Statement of Financial Affairs filed with the court and conduct an examination under oath at what’s called the 341 meeting of creditors. The Trustee’s investigation may also include a more thorough review of your financial history such as reviewing your bank account records and statements and copies of all checks for a period of time prior to your bankruptcy filing. In the Statement of Financial Affairs, you must list any one person who received a gift from you in the sum of $600.00 or greater within two years of your bankruptcy filing. As such, any gifts that do not fall within those guidelines may raise an issue to the Trustee and cause a further investigation.
If you are considering filing for bankruptcy, it is prudent to consult with experienced bankruptcy counsel to review your financial circumstances, consider all of your options, and decide what action would be in your best interest. Kirschenbaum & Kirschenbaum’s expert bankruptcy team has over 40 years’ experience representing parties in bankruptcy court.
For assistance with all Bankruptcy matters, please contact us:
Ken Kirschenbaum, Esq. (516)-747-6700 Ext. 301 or ken@kirschenbaumesq.com
Stacy Spector, Esq. (516)-747-6700 Ext. 304 or sspector@kirschenbaumesq.com