How far back in time can the trustee look to recover a preferential payment?
The look-back period, or period of time that the trustee can go back to unwind these transfers, is ninety days for general creditors and one year for insiders (relatives or someone with a close or influential relationship with you—see more below).
Which of the following debts is not dischargeable in bankruptcy?
Other Non-Dischargeable Debts in Bankruptcy 401k loans. Other government debt such as fines and penalties. Restitution for criminal acts. Debt arising from fraud or false pretenses.
What is a preferential transfer in bankruptcy?
A preferential transfer is a payment a debtor makes to one or more creditors before filing for bankruptcy that results in paying back an unequal amount of debt to their other creditors. It gives preferential treatment to some creditors over others, and a bankruptcy trustee may decide to claw back the payment.
Are all debts dischargeable in bankruptcy?
Not all debts are discharged. The debts discharged vary under each chapter of the Bankruptcy Code. Section 523(a) of the Code specifically excepts various categories of debts from the discharge granted to individual debtors. Therefore, the debtor must still repay those debts after bankruptcy.
What is claw back in bankruptcy?
A “clawback” allows a trustee to void (undo) a transaction and get the money or property back for the benefit of your unsecured creditors. A trustee will use the clawback provision if you pay a preferred creditor or transfer property out of your name before filing for bankruptcy.
Who ends up paying bankruptcy?
So Who Actually Pays for Bankruptcies? The person who files for bankruptcy is typically the one that pays the court filing fee, which partially funds the court system and related aspects of bankruptcy cases. Individuals who earn less than 150% of the federal poverty guidelines can ask to have the fee waived.
What debts does Chapter 7 discharge?
What Debts Are Discharged in Chapter 7 Bankruptcy? A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.
What is section 547 (e) (1) (b)?
Section 547 (e) (1) (B) is adopted from the House bill and Senate amendment without change. It is intended that the simple contract test used in this section will be applied as under section 544 (a) (1) not to require a creditor to perfect against a creditor on a simple contract in the event applicable law makes such perfection impossible.
What is section 547 (c) (6) of the Federal Reserve Act?
Section 547 (c) (6) represents a modification of a similar provision contained in the House bill and Senate amendment. The exception relating to satisfaction of a statutory lien is deleted. The exception for a lien created under title 11 is deleted since such a lien is a statutory lien that will not be avoidable in a subsequent bankruptcy.
What is section 67A of the Bankruptcy Act?
Subsection (d), derived from section 67a of the Bankruptcy Act [section 107 (a) of former title 11], permits the trustee to avoid a transfer to reimburse a surety that posts a bond to dissolve a judicial lien that would have been avoidable under this section. The second sentence protects the surety from double liability.
What is subsection (a) of the Bankruptcy Act?
Subsection (a) contains three definitions. Inventory, new value, and receivable are defined in their ordinary senses, but are defined to avoid any confusion or uncertainty surrounding the terms. Subsection (b) is the operative provision of the section. It authorizes the trustee to avoid a transfer if five conditions are met.