Precceding filing a Chapter 13, how many days do you have to report and extra money you have?

Question

IF someone were to get a settlement on a personal injury, but not enough to pay off all debt, and they still need to file a Chapter 13, how long can they have had that money in their posession and NOT have to report it to the bankruptcy court?

I heard it was 90 days.

I also was told you cant give anyone who you owe money to, such as someone you borrowed money from, more than $600 in the preceeding 90 days?

Answer 1

Your lawyer should know the answer to this question. I think all assets need to be reported.

If I were in your situation. The first I would do is double check the fact of a 90 days of payments over $600. Assuming this is true I would approach any creditors that you might be able to settle with for less than $600. Tell them you have a lump sum and will be entering bankruptcy, so they can either accept amount x now or see what they will eventually get through the bankruptcy process.

Be sure to get in writing that the amount will settle the complete debt.

Also be sure to make minimum payments on anything that is current or only a little late, so that those accounts do not get worse.

Answer 2

I was on the same situation and this site helped me MYLOANSRATES.NET-

RE Precceding filing a Chapter 13, how many days do you have to report and extra money you have?

IF someone were to get a settlement on a personal injury, but not enough to pay off all debt, and they still need to file a Chapter 13, how long can they have had that money in their posession and NOT have to report it to the bankruptcy court?

I heard it was 90 days.

I also was told you cant give anyone who you owe money to, such as someone you borrowed money from, more than $600 in the preceeding 90 days?