Anyone who needs to seek Chapter 13 bankruptcy protection can't afford to have their case dismissed and lose out on debt relief due to accusations of bankruptcy fraud. But what can you do to ensure that the court doesn't see your expenses as fraudulent? Here are a few key things to do.
1. Question Everything
The bankruptcy court doesn't expect you to avoid spending any money at all — nor even to stop using credit cards if you must.
As you might know, filers using chapter 7 can be subject to property losses in some cases. However, not everything is vulnerable to the bankruptcy trustee's powers of seizure. Read on to find out what might be vulnerable, what is protected, and how filers can use exemptions to protect property.
What Can be Seized?
The law says that some items exceeding your state's exemptions can be taken. When that occurs, the property is sold and the funds are used to pay some of your bankruptcy administration expenses and sometimes, a creditor.
