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How to file for bankruptcy in India?

What's the most amount of money you can have in your bank account and be able to file bankruptcy?

  • I have $13K in the bank, which I'm saving to pay my income taxes ($3,900) and saving for when I transition from State Disability to Unemployment in a couple of months (unless I get a job, that is). I'm also going to do a short sale on my house. I'm $32K in debt and I'm underwater in my house. I am unemployed and have been on State Disability for three months, with three more months to go. The reason I have so much in my account is because I withdrew (not borrowed) $15K from my 401K a few months ago. Do I have too much in my account in order to qualify for bankruptcy? I was told by a bankruptcy attorney that you have to make $30K or less in a period of six months to qualify for bankruptcy. I made less than $30K. I haven't paid my mortgage for the past three months, but I've paid my credit card bills. I owe $800/month to my creditors. What about will I qualify for a short sale if I have $13K in the bank? The short sale is going to start in May. I'm going to file bankruptcy in April or May. Should I take out my money now and give it to my relatives to hide? Or, can I have that much in my bank account? Or, will I be forced to use it to pay my creditors once I file bankruptcy? Only answer this question if you know the answer. Thanks.

  • Answer:

    1) Find a better attorney. 2) HIRE THEM and do what they say. Attorneys are professionals and they are there to help you. Most bankruptcy attorneys offer free consultations, and while they won't answer all of your questions for free (they need to be hired to work for you) you should be able to get a sense of whether you feel comfortable working with one before you hire them. Whether or not you can keep that much money in a bank account depends on the exemption laws of the state you live in. Unfortunately, it all would definitely have been safe if you'd left it in your 401K, but its too late now. DO NOT TRY TO HIDE THE MONEY BY GIVING IT TO RELATIVES. That is bankruptcy fraud and is a Federal crime. What's the point of a short sale if you are filing bankruptcy anyway? Nearly all consumer bankruptcy attorneys offer free consultations. Take advantage of this to meet with one and get advice based on all of the details of your particular situation. You can find a referral at NACBA.org (National Association of Consumer Bankruptcy Attorneys).

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Bottom Line you cant hide money that is considered fraud. Also anything you give to your relatives can be undone by the court trustee, if you fail to report it on your bankruptcy and they find out they will toss your case out and trust me they will find out because you have to hand over copies of I believe its 2 years worth of bank statements and pay stubs and tax returns. If you pull out a lot of money its going to raise a huge red flag. You have debt, sometimes its your fault sometimes its not and that's none of anyone's business but yours, your lawyers and the court. Bankruptcy have built in allowances that allow you to keep things like your 401k, personal property and yes even savings(up to a certain amount) is exempt. Your lawyer can tell you what the allowances are for your state. Dont let yourself get so caught up on the money. Bankruptcy was put in place to help people get their life back, so what if they end up taking a couple K from your bank account. In the long run its only a fraction of your total debt, be thankful for it and move on with your life. Ultimately its up to the court trustee and the exemptions in your state. Most likely you will get to keep at least 50% of whats in your account...maybe even all of it, but Im not an expert so I cant say that for sure. Ask your lawyer or you can google chapter 7 (I assume thats what you are going to file) allowances for your state.

Quite the milker aren't you.... funny that you are on SDI and know exactly when you are going to roll off, which exactly coincides when you would have no more benefits = kind of funny isn't... Then you are want to know if it's ok to slip daddy and auntie some money too... The answer is = you can have hundreds of thousands of dollars in your account when you file BK.... it depends on your debt ratio. If you owe $14M and have $500K you can file BK. Grow up... you are an adult (37 - is that what you were saying in previous questions?)... you spent the money on credit cards, so start selling the stuff that you purchased with the cc.... I'm glad I don't know you in real life.

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