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URL:  https://boards.fool.com/ive-always-wondered-cant-a-person-wait-until-28668236.aspx

Subject:  Re: I'm Drowning...advice on refinancing mortgag Date:  7/30/2010  1:07 PM
Author:  vkg Number:  298704 of 312702

I've always wondered... can't a person wait until after he's revealed his accounts to the court, and then immediately run out and open a new account and transfer his money into it before all the other accounts get frozen up?

I'm guessing there are methods the court uses to prevent this, but I'm curious what they are.

xtn


I don't understand the goal.

Once bankruptcy is filed, creditors cannot procede with collection attempts. Bank accounts aren't "frozen." It is still possible to pay routine expenses. Continued use of credit accounts or obtaining new accounts would be fraud.

Hiding assets is fraud. Making large payments to specific creditor just before filing bankruptcy is not permitted and repayment can be ordered. Even creditors that were successful in obtaining funds from a judgement before bankruptcy is filed can be ordered to return the funds.

Annoying any court is a bad idea. If you annoy the judge, the simplest action the judge could take would be to deny the bankruptcy based on deception. Serious attempts at fraud could result in criminal charges could be filed.

Debra
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