Legal Question in Bankruptcy in Illinois
Bankruptcy question for State of Illinois: A debtor called and informed us that he is filing his bankruptcy paperwork on 12/6/16. He was actively adding to his balance less than 60 days ago. I suspect he had already initiated his bankruptcy before or during the time he was actively adding to the debt over the last 6 months. Does the court allow people to discharge debts that were incurred during that time since the retained their bankruptcy attorney? Does the attorney have to divulge the date they were retained when filing their paperwork?
1 Answer from Attorneys
There are protections in place for debts incurred in contemplation of filing bankruptcy. A presumption favoring the creditor arises for the ninety-days prior to filing, but a challenge can be made beyond that period. The fee disclosures made by the attorney may provide some guidance about the date the attorney was retained. Otherwise, that would part of the relevant inquiry in filing a challenge to discharge.
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