For some reason, a lot of people I speak to have an understanding that bankruptcy is a simple process. You just sign some papers, go to court, wipe out your debts and then go in peace. In other words, it is a walk in the park. Some call my office wanting to just talk for a few minutes and ask a couple of questions and expect they can get a quick consultation over the phone. I am not sure why people fees this way about bankruptcy; maybe these false impressions are because they think that if they can't pay their debt, they are entitled to a bankruptcy discharge. Most of my clients are surprised that there is more than meets the eye.
Property gifted to you is property of the bankruptcy estate. An engagement ring, jewelry, family heirlooms, are all items that are included in a bankruptcy estate. The mere fact that you received something by gift does not alter your ownership interest. You simply own it whether you paid for it or not. Can you give it back? Yes, but that transfer can be avoided in bankruptcy, which means in bankruptcy the person appointed to oversee your case can recover the jewelry that you gave back. The bankruptcy estate includes all property that a person may have sentimental or emotional attachment and that attachment can be so strong that a person opts not to file for bankruptcy.
I can keep my car in bankruptcy, right? Most people think that they get to keep a car in bankruptcy. It makes sense, right. You need a car to get to work to pay the bills, including your credit cards and other monthly expenses. If you do not have a car, you cannot get to work and will be unable to pay those bills. So, therefore, I am entitled to a car. Well not exactly.
Aeropostale isn't going off the shelves just yet. Aeropostale has been in the midst of a bankruptcy since May 2016. The company believed that it would have to close many if not all store fronts in order to save themselves from falling deeper into financial instability.
You did it! You completed your long journey and now you are ready to begin a new one. In order to be financially successful after bankruptcy, you'll need to do a few things. Here's a checklist that can help.