Legal Question in Bankruptcy in Nevada

Re: Personal accountability re: chapter 7

A provision of the Bankrutpcy Code must be considered in looking at the question.

11 USC � 548. Fraudulent transfers and obligations, provides:

(a) The trustee may avoid any transfer of an interest of the debtor in property, or any obligation incurred by the debtor, that was made or incurred on or within one year before the date of the filing of the petition, if the debtor voluntarily or involuntarily -

(1) made such transfer or incurred such obligation with actual intent to hinder, delay, or defraud any entity to which the debtor has or became, on or after the date that such transfer was made or such obligation was incurred, indebted; or

(2) (A) received less than a reasonably equivalent value in exchange for such transfer or obligation; and

(B) (i) was insolvent on the date that such transfer was made or such obligation was incurred, or became insolvent as a result of such transfer or obligation;

(ii) was engaged in business or a transaction, or was about to engage in business or a transaction, for which any property remaining with the debtor was an unreasonably small capital; or

(iii) intended to incur, or believed that the debtor would incur, debts that would be beyond the debtor's ability to pay as such debts matured.

There may be other laws affecting your ability to resolve a debt problem, which is necessarily beyond the scope of this reply.

I charge $200.00 per hour for case analysis, advice, suggesting and recommending alternatives, legal drafting, telephone calls, legal research and helping people with asset protection problems when I am hired by a client.

If I do not hear back from you by Friday, February 19, 1999, I will assume that you have answered your questions to your own satisfaction, hired another lawyer, or decided against pursuing the matter.

I hope this is of assistance to you.

Paul Malikowski

Malikowski Law Offices, Ltd.

33 West Eighth Street

Re: Personal accountability re: chapter 7

You definitely should consult an attorney to review your particular circumstances. My initial impression of your situation is that things may not be as bad as you think. But, if you were to find that you had to file Bankruptcy, you would not be left "destitute." It will help you stop worrying and risking inadvertently breaking the law to have an objective opinion of the risks and consequences of anything you do. Paul is in Reno, I am in Las Vegas. I suggest that you see either of us ASAP so that you can start sleeping again.

Good luck!

Dorothy Bunce

Weekend Lawyer

3436 Townhouse Drive