Can Bankruptcy Touch Items Gifted to me?

A gift is a wonderful thing. Holiday gifts are particularly heartwarming, helping everyone to embrace the generous spirit of the season. Unfortunately, though, during a bankruptcy proceeding, gifts can become a source of great confusion. If you’re considering filing for Brooklyn bankruptcy you might be wondering what it affects, and, more specifically, if it will cause the gifts you’ve received to become forfeit. Thankfully the law provides answers to troubling questions like these.

Gifts Under Chapter Seven

The good news is that you don’t always have to give up your gifts. If you file under Chapter 7 any gifts you receive after that filing are typically safe. Anything received before that point needs to be accounted for and will most likely be liquidated. Of course, seeking out the guidance of a bankruptcy attorney in Brooklyn New York is one way to positively determine what and/or when things are exempt.

Gifts Under Chapter Thirteen

If you file under Chapter 13, this means your disposable income will be siphoned for a period between three to five years in order to pay back everyone that you owe. Your gifts probably won’t be taken away during this particular bankruptcy filing (regardless of when you received them) but their value might be added to your overall income, forcing you to pay more to your creditors.

Gift Giving

When filing for bankruptcy you will also be required to disclose any large gifts you’ve made during the preceding twelve months. This is so it can be determined that you weren’t trying to get rid of your assets in a duplicitous manner before filing. Customary birthday and holiday gifts are typically exempt, but it can depend on the situation.

Get the Best Legal Representation

As you can see, the multitude of nuances and rules involved with bankruptcy makes it imperative that you consult with a qualified attorney. Anyone who doesn’t specialize in bankruptcy law, even if they happen to be an attorney, simply isn’t equipped to handle its complexity. Plus, a skilled bankruptcy lawyer in Brooklyn can help you get exemptions or find ethical ways to make the system work to your benefit. Don’t put your gifts and finances in the hands of an amateur, always let a trained professional take the reins.