Should you pay back your parents, siblings, friends or other relatives before filing bankruptcy? I get this question frequently as many of the potential clients I see have borrowed money from private sources in an effort to avoid bankruptcy.
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The United States Supreme Court does not frequently hear cases involving consumer bankruptcy law. However, this past February, the Supreme Court considered the case of Robert Marrama, a Chapter 7 debtor in Massachusetts.
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Whenever I teach a continuing legal education bankruptcy seminar, I always get questions about fraudulent transfers. Bankruptcy Code Section 544 as well as the Official Code of Georgia make transfers by an insolvent debtor to another person for less than market value a fraudulent transfer.
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One of the less well known components of the BAPCA bankruptcy law changes has to do with exemptions. Exemptions, as you may know, refer to those assets that are sheltered from seizure by the trustee. You can read more about the Georgia exemptions on my Georgia bankruptcy law web site.
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My colleague attorney Scott Riddle recently posted on his Georgia Bankruptcy Blog an important reminder to both debtors and their counsel about the importance of full and complete disclosure of assets and debts in bankruptcy petitions.
I see a possible trap for the unwary in one of the October 17, 2005 changes to the Bankruptcy Code. I do not have a firm answer to this and I welcome any suggestions or thoughts.
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Jonathan Ginsberg

