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I may have to file for Chapter 7 BK in 1 or 2 years if I can't turn things around. I just sold a investment property and

Solana Beach, CA |

received a escrow check for $112,000.00. I made no profit on the property. The money is in multiple bank cashiers checks all under $9000.00. If I cash them now and file for BK in a year or two can they find that out and if so what can a Trustee do if I said I spend it on having a good time, ( gambling, party, etc. ).

Attorney Answers 3

  1. This is a duplicate question. See my previous answer. Doing what you propose would be foolish.

    First, the firm is a debt relief agency according to the U.S. Bankruptcy Code. We help people file for bankruptcy. We also do other stuff and we do it well, but Congress wants me to post this notice. Second, nothing on this site is legal advice. You are not my client unless you enter into a written agreement signed by you and me.

  2. You wrote, "what can a Trustee do if I said I spend it on having a good time, ( gambling, party, etc. )."
    A: Deny/revoke the discharge, seek a personal injunction against your filing bankruptcy or nothing at all.
    Your Creditors have similar rights of petition to the Bankruptcy court.

  3. If you file BK within 2 years of the transfer of the property, you could be asked about it by the trustee. The natural follow up would be for the trustee to require you to produce the escrow statements which will confirm how much you received. After that, the trustee will want to know what happened to that money and if you have any of it left. Telling the trustee you frittered it away on gambling and partying instead of using it to settle with creditors is foolish at best and fraudulent at worst. The fact you are holding the money in amounts under $10K is another indicia of attempting to hide the funds. You can legally transform non-exempt assets (cash) into exempt assets, (equity in owner occupied real estate).

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