We find this concern legitimate. That's why it helps to review the possible circumstances to give you a better idea. Nevertheless, our answer is that you can still secure their future even after you've filed for a Chapter 7 or Chapter 13.
Will My Children’s Property Be Confiscated?
Generally, any property you've purchased is considered as your property. This will be listed in your bankruptcy schedule. If the child paid for an item from his or her own money (and you can prove it), then the item is not your property. For instance, all the items of electronic gadgets, clothing, toys, and furniture will be counted as belongings in your bankruptcy. But don't be alarmed. Bankruptcy trustees have no interest in such items because there’s little to no value in them. When you file for Chapter 7, you’re allowed to keep all exempt property. On the other hand, you are allowed to keep all of your property if you qualify for Chapter 13.
Will This Affect My Children's Bank Accounts?
Well, this could be a different story here. Since you've been asked to disclose all bank accounts, then a minor bank account will list you as the holder. But if the said account is under the Uniform Transfers to Minors Act or the Uniform Gifts to Minors Acts, then it is not a property of the bankruptcy estate.
Take note. You are not allowed to transfer money to your child's account prior to the filing of Chapter 7 or Chapter 13. If by chance you've done that. Then that deposit will be seized by the bankruptcy trustee and will be used to repay your creditors.On another hand, this transaction is considered fraud and will most likely result in a nullification of your bankruptcy.It's a good idea to carefully work with a bankruptcy lawyer in Davidson MD so you can protect any asset that belongs to your children.
Will My Children Be Denied Student Loans in the Future?
No. Your children will still be able to obtain college loans. However, your filing for bankruptcy will automatically disqualify you from a credit-based loan. In the instance of you being denied a Plus loan, then it is up for your children to take out a larger loan on their behalf.
You don’t have to worry. A better future is still possible if you’ll declare for bankruptcy. Talk to a bankruptcy lawyer in Davidson MD to bankruptcy lawyer davidsonville md know more how these matters could affect your children. If you're in need of guidance and support in these challenging financial times, then call us! Baneylaw PC offers a free face-to-face consultation.We have assisted many parents through the Chapter 7 and Chapter 13 bankruptcy process. bankruptcy lawyer davidsonville md We are happy to answer any questions regarding how bankruptcy may affect your children.