Legal Question in Bankruptcy in Pennsylvania

Limitations on Eligibility in Bankruptcy

If the money is returned to your father 180 days prior to the declaration of bankruptcy, it won't hurt your bankruptcy. However, if the bankruptcy is filed before 180 days the bankruptcy court would deem it a fraudulent conveyance. Your fathersfurniture would not be declared as your assets and you could return them to your father beforethe bankruptcy without any problem. You, however have an exemption which may be taken under the federal law or the state law under which you reside. Certain things such as medical equipment, car, essential furniture may be totally exempt. If you take the federal exemptions you get a $25,000 exemption which could apply to any of your goods including equity in real estate or on an automobile. You should consult with an attorney in your own jurisdiction since exemptions under state law differ. Some times it is advantageous to take exemptions under the state law rather than the federal.

Bankruptcy Questions

Repaying your father could be considered what is known as an assignment for the benefit of creditors. I would not recommend this course of action because the bankruptcy trustee could overturn the repayment. If the personal property is your father's and not yours, you would not list the property as being owned by you on your bankruptcy petition. The seven year old car sounds like it could be claimed as exempt property if it has been paid for. If you do not make the house payment it will be eventually foreclosed on. But your better alternative is to have the hosue sold. Foreclosure will cost you attorney fees and maybe even a deficiency judgment.

CONTACT ATTY IN LOCAL JURISDICTION

YOUR CASE REQUIRES THE GUIDANCE OF AN ATTORNEY TRAINED IN EXEMPTIONS IN YOUR JURISDICTION AND SOON, IT SEEMS.YOU CANNOT SAVE $$$ BY ATTEMPTING TO UNRAVEL THIS PROBLEM ON THE NET!