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Bankruptcy is when an individual or a business is unable to pay their debts to the creditors that the money is owed, and seeks relief or embellishment of the debt by filling a motion in the federal bankruptcy court. The filing of this process leads a person to start fresh with a clean slate in financial matters as the record of debt is removed from the credit report, and the responsible party is not longer held accountable for the outstanding debt. There are a few different types of bankruptcy that a person or business may qualify for filing. However depending on the location, the laws may differ on the bankruptcy process and qualifications. Filing bankruptcy may involve a whole range of issues that might give rise to many questions that are asked to bankruptcy lawyers online. This article provides answers to some of the most common asked questions about such issues. Can someone’s step parent claim a child’s gift of property from a dead parent in their bankruptcy?
In most cases, if the child can prove that the property was gifted from a deceased parent the chances are high that the child should be able to get the property discharged from the bankruptcy estate. The reason for this is because the property is separately owned and is not considered property of the step parent. The child will have to petition the court on this issue. How far does a court in the state of California look back in the case of a gift to a family member?
In California there is no such fixed amount of time that a court will look back on the debt when someone with a loan files for bankruptcy, be it to a relative or to a friend. But the court will look back two years if there is a gift involved. What are the rules regarding inheritance after a person is awarded a bankruptcy?
There are various rules governing different circumstances. If it is a gift then it does not become a part of bankruptcy estate provided the person has received it after the filing. In the case of a lottery ticket, if it is purchased before filing, the prize money would become part of the bankruptcy estate; whereas if it is won after the bankruptcy has been filed it would not be so. If an individual inherits a property within 90 days after then it becomes a part of the bankruptcy estate. However, if it is after 90 days that case would not be so. Can a person accept gifts from friends after filing for bankruptcy?
While filing a person does not usually need to report certain gifts to the trustee. The person can receive after a material settlement, inheritance, death benefits or life insurance policy proceeds. It has to be reported only if these are received within 180 days of filing. Bankruptcy is a tool by which an individual can get rid of the responsibilities of paying his / her debts. There might be complex situations where a person receives or gives a gift when he / she may have already filed. Such a situation might be difficult for a lay person to deal with. Hence, in such cases it is better to ask a bankruptcy lawyer to suggest the best course of action.
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