For parents in and around Mankato, MN, imagine your sons and daughters going to college. Emotions overflow. A new adventure awaits. All that hard-earned money is finally producing more educated citizens. Now you have the time to pursue other interests. Behm Law Group, Ltd. congratulates you on this new chapter in your life.
Let’s fast forward a couple of years. Let’s say you’ve incurred a large amount of debt. You worry. Your financial decisions don’t seem to bring you much income, so you file for bankruptcy. At least your children’s futures will be better, you think. They’re already well on their way to achieving degrees.
There’s one slight hiccup the bankruptcy attorneys at Behm Law Group, Ltd. want you to be aware of. When someone files for bankruptcy, the court normally appoints a trustee. What do you think that trustee’s job is? It’s not to safeguard your money. Rather, it’s to help creditors recoup as much money as they can.
In fact, court-appointed trustees can review payments made 4-6 years prior to the bankruptcy in most states. If there doesn’t appear to be a viable need for that spent money, it can be re-taken by the trustees. Essentially, the end result would be as if you never spent the money in the first place.
Whoa, you exclaim! How could that affect you? Remember that tuition you paid? You may view that expense as essential and beneficial. Of course, your children can prove the education made their lives better. Or, can they?
Actually, in many cases, a court-appointed trustee can and has recovered spent tuition monies. Now you’re wondering what your rights are. We’re glad you asked.
Contact the bankruptcy attorneys at Behm Law Group, Ltd. for your bankruptcy needs in the Mankato, Minnesota area. Find out what trustees can and can’t do in your situation. Find out how recovered tuition would impact your child’s education. Get some answers and some peace of mind.