Most folks considering bankruptcy know about the 90 day rule in bankruptcy.
They’ve talked to friends or read on the internet.
When they get to a bankruptcy lawyer’s office, they’re eager to tell me they know about the rule, though sometimes they have questions about just how it works.
- Some think the rule is one prohibiting paying any bills during the run up to bankruptcy.
- Others think it is a rule against buying anything.
- Some are simply unclear how it works.
Which is all very interesting, except that there is no 90 day rule.
Or at least, no rule that makes any difference to debtors.
90 day rule affects creditors
The only bankruptcy rule with a 90 day scope is a rule that allows a bankruptcy trustee to recover money from creditors.