Bankruptcy laws can be tough to grasp, especially regarding property acquired within 180 days of filing. At Mack & Associates, LLC, we offer clear guidance to those in Topeka, KS facing bankruptcy. This article sheds light on key bankruptcy exceptions Topeka residents should know about for property acquired in this period.
Post-Bankruptcy Property Acquisitions
Mostly, property acquired after filing does not join the bankruptcy estate. Yet, exceptions exist for property gained within 180 days of filing. These include property through bequest, spousal settlements, and life insurance benefits.
Types of Property and Their Impact
Bankruptcy exceptions Topeka residents need to know about substantially impact things like an inheritance. For example, funds from “payable on death” accounts or “transfer on death” deeds usually don’t count as inheritance. Also, trying to disclaim inheritance in this period may not keep such property out of the estate.
Chapter 13 Bankruptcy: Key Details
Chapter 13 bankruptcy in Topeka, as well as throughout the Federal District of Kansas, has rules different from Chapter 7. In Chapter 13 cases, all property and earnings gained during the case belong to the estate. This differs from Chapter 7 cases. It’s key to remember that Social Security benefits, received before or after filing, aren’t estate property.
Misconceptions About Postpetition Acquisitions
Many think Chapter 13 debtors must update their schedules to show post-petition property gains. But, the Bankruptcy Code or Rules don’t explicitly require this, though some courts have ruled otherwise.
Guidance Through Bankruptcy with Mack & Associates, LLC
Grasping these bankruptcy aspects is crucial for those considering filing in Topeka, KS. At Mack & Associates, LLC, we guide our clients effectively through their bankruptcy. For that reason, we tailor our approach to each individual’s needs, ensuring informed decisions. Whether you file a Chapter 13 bankruptcy in Topeka, or if you file Chapter 7, you owe it to yourself to understand how your financial life will be impacted.
For more info and guidance on bankruptcy, visit www.kansasjustice.com. We aim to help you understand your rights and options, guiding you to a more stable financial future.