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The 90-day rule in Chapter 7 allows the bankruptcy trustee to look back at your financial transactions for 90 days prior to your filing. Any large payments or transfers made during this period may raise red flags and could lead to scrutiny. It's important to be aware of this rule to avoid potential complications in your bankruptcy case. Consider using US Legal Forms to better navigate this aspect of bankruptcy law.
A 90-day look back is a review period used by courts to examine your financial transactions before filing for Chapter 7 bankruptcy. It helps identify any suspicious activities, such as transferring assets to avoid bankruptcy. Being aware of this period can influence your filing strategy, especially if you have significant assets to protect. Using resources from US Legal Forms can prepare you for what you should disclose during this review.
The 90-day rule for Chapter 7 refers to transactions made before filing for bankruptcy, particularly those that involve family members or transfers of assets. If you make significant changes to your finances, the bankruptcy court may scrutinize these actions within the 90 days leading up to your filing. In certain situations, these transactions may be undone. Utilizing US Legal Forms can guide you on how to handle these crucial pre-bankruptcy activities.
Separate Households As a default rule, if you and your spouse share a household, you likely need to include their income and expenses. Bankruptcy law presumes that if you and your spouse share a household, then you also share living expenses.
You are permitted to seek bankruptcy while legally separated. Whether or not bankruptcy will solve your debt issues is another question. While filing bankruptcy alone will usually involve your own debts and assets, the debt you share with your spouse may not be dischargeable in a Chapter 7 bankruptcy.
Sometimes both partners within marriage are facing financial challenges, while other times one has racked up significant debt on joint accounts that affect both partners. It's important to know that married couples have the option to file bankruptcy together, but they're not obligated to do so.
Widows and widowers are perfect candidates for bankruptcy because they are experiencing permanent and often drastic changes to their financial situation.
Your Spouse's Income Counts In order to file a Chapter 7 bankruptcy, you must pass a ?means test.? The means test takes into account the income of both spouses, whether or not they file together.