How far back does the court look into how you disposed of savings?
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How far back does the court look into how you disposed of savings?
Asked on December 20, 2011 under Bankruptcy Law, Alabama
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
With respect to a bankruptcy filing and depending whether the filing is a liquidation or a reorganization, the court looks to see if the debtor is honest with respect to his or her assets that are being listed in the schedules filed with the court. If the debtor is not being honest as to his or her assets, the court could dismiss the bankruptcy on such a ground or even charge the debtor with a bankruptcy crime.
With respect to how far back in time the court looks to see what a debtor has done with his assets (savings), the court really does not look at what one has done with his or her assets in the past. The bankruptcy court looks to see what the current situation is with respect to liabilities exceeding one's assets and whether or not to grant the requested bankruptcy discharge of the debtor.
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