If you have declared bankruptcy, your trustee assesses your assets and your liabilities. From this point, until your discharge from bankruptcy, the trustee deals with your creditors. The law requires that all creditors be treated fairly. Preferential treatment of certain creditors, or transfers below market value, can be reviewed or set aside by the court.
“Preferences” are regarded as unfair payments to certain creditors. Preferences in bankruptcy refers to the transfer of assets or money to a creditor in the period leading up to filing for bankruptcy. These creditors are getting preferential treatment at the expense of the other creditors.
Preferences are often paid to family members. It is illegal to make unusually large payments if you know that you will shortly be filing for bankruptcy, as these preference transfers reduce the assets which could be have been fairly distributed among all eligible creditors. The law therefore allows the trustee to regain the asset or assets through the courts, and the preferential transactions are set aside.
Transfer of assets are regarded as preferences if these preferential payments were made to creditors within 3 months of filing for bankruptcy. The time frame is increased for family members, known as “not at arm’s length creditors”. Transactions to family members could be reviewable if these transactions are made up to 5 years before bankruptcy.
Transfers of assets below their market value are also subject to Court action.
Extremely professional service by Mr. Thatcher and his team. Mr. Thatcher and his team were always available and quick to answer any questions concerning bankruptcy. I would highly recommend this company to anyone that would require his services!
I have worked with Kevin and his office for many years and would recommend his services to anyone who is having financial difficulties. He is very professional and has spent many years helping people get out of tough debt situation.
The staff at Kevin Thatcher & Associates are incredibly understanding, non-judgmental people who honestly advised me of all my options before I chose to go bankrupt. I was surprised at how easily they broke down the process for me step-by-step so I was able to meet all the requirements.
I just wanted to thank everyone at Kevin Thatcher and Associates for their help. I was at wit's end and couldn't cover most of my bills. I was afraid to answer the phone ever as it might be another collector calling! I was so depressed.
I was looking for a bankruptcy firm and was recommended Kevin Thatcher and Associates. I initially spoke with his pleasant and knowledgable staff(Anna) over the phone. I was very impressed by her and her soft approach being in a difficult situation.
Very kind, caring and helpful group at Kevin Thatcher and Associates.
I was in a real bind with a lot of debt from credit cards and payday loans but I met with Kevin and his staff were very understanding of my difficulties paying. I paid for 21 months under these federal income rules, but was way cheaper than if I did nothing.
Staff is extremely kind and knowledgeable! They took a stressful situation and made it more manageable, so thankful for their expertise.