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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I have had a string of bad luck beginning with a judgement

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I have had a string of bad luck beginning with a judgement that was entered against me in February.

I recently received a payout for stock I have held in a small business unrelated to the judgment.

How long do I have to wait to declare bankruptcy so this money will not need be considered in the bankruptcy.
Hi JACustomer,
1) How much money did you receive?
2) What are you planning to do with the money?
Customer: replied 6 years ago.

1) I will receive 140k before taxes.


2) I am not sure. Whatever is allowable. I was thinking that gifting IRS allowable amounts (13k) to family and friends, but am open to suggestions.

The Bankruptcy court can "look back" 2 years before you file a Bankruptcy. This means that any assets - including the money you received for your stock - that were transferred to someone else within the 2 years before filing can be taken back by the Bankruptcy court. Bankruptcy Stat. 548.
In summary, you would have to wait 2 years after transferring the stock money before you could file a Bankrutpcy.

I think this is what you wanted to know. If not, please let me know.
Thank you!
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