Though you may view friends and family different from other creditors, the bankruptcy laws do not. Furthermore, when you file for personal protection under Chapter 7 or Chapter 13, the bankruptcy court will look at more than your debts and assets at the time of filing. The bankruptcy laws allow the court to “look back” at any payments you have made to creditors over a certain period of time:
It’s also important to understand that a payment will still be considered preferential, even if your intent was not to defraud other creditors. However, if the court finds an intent to commit fraud, you may face criminal, as well as civil, action.
At the office of Howard N. Sobel, we provide personal bankruptcy counsel to men and women throughout the state of New Jersey. Contact our office online or call us at 856-424-6400 to set up a free initial consultation. Evening and weekend appointments can be arranged upon request. We accept all major credit cards.
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