Bankruptcy and Debt to Family Members
If someone is contemplating a possible bankruptcy, then he or she should not make any payments to family members unless and until the bankruptcy lawyer has been able to analyze the situation and give advice with regard to this payment. The reason why care should be taken in paying money back to family members is that if the debtor files a bankruptcy within a year of the time that the payment was made, then the payment could be voided. With proper planning, family members can be paid either before or after a bankruptcy. Without proper planning, then the bankruptcy of the debtor could result in a lawsuit being filed against a family member.