Can a Person Sell or Give Away One’s Assets Before Filing Bankruptcy?

Do you own assets that you would like to keep after filing for bankruptcy? You are probably wondering if it is possible to sell or give these assets before declaring bankruptcy, a question that will be answered in the following article.

Selling assets before going bankrupt

First of all, people should know that this is a pretty risky strategy. When a judge reviews the validity of an application before granting the filer bankruptcy, they will make sure that they have not tried to fool them in any way by disposing of all your assets before declaring bankruptcy. Be aware that, if a person wants to sell or give away their assets, they should do so years before filing.

In some cases, transactions up to five years before bankruptcy may be canceled by an Insolvency Trustee if the Trustee determines that the gift was made for the purpose of defrauding creditors. Also, be sure to keep a record of all the goods you give and sell, and avoid spending from the amounts obtained through these sales.

If a filer is bankrupt, can they still run their business?

If the filer’s financial situation is becoming worrisome, bankruptcy may seem like an attractive solution. However, this can also lead to several questions regarding their profession. It is important to clarify some points related to self-employment, running a business, and bankruptcy.

For starters, is it possible to work on your own after declaring bankruptcy? The short answer is yes. Even if you are still not discharged from bankruptcy proceedings, people can continue or start working on your behalf. However, people should know that some professionals find themselves in front of different rules.

If the filing party is a lawyer or a certified professional accountant, for example, their professional order will prevent them from continuing to practice their profession (lawyers will even lose their status as a member of the bar). A person exercising one of these two professions will have to reapply for membership after their release, with no guarantee that their application will be approved. Hiring the right bankruptcy lawyer could make the process easier. Visit http://tulsabankruptcylawyers.net/bankruptcy-attorney-tulsa-chapter-7-bankruptcy/ for more information.