When filing for bankruptcy for the first time, debtors must list all of their assets and liabilities. For the purpose of evading payment or deceiving creditors, those who fail to disclose their assets or property are subject to severe fines. The goal of declaring bankruptcy is to receive a discharge, and with that discharge, a new beginning. But bankruptcy legislation was created to enable the maximum amount of repayment to creditors. A Montgomery bankruptcy attorney may assist you in drafting your petition and collaborate with you to ensure that you receive the fullest discharge attainable as a consequence of your bankruptcy. It is crucial to be transparent about your assets.
What does chapter 7 bankruptcy say?
You must detail all of your assets and debts when you seek the bankruptcy court to dismiss your debts. You are required to swear under pain of perjury that the information in this disclosure is accurate and true. The court will make its decision regarding whether any assets can be liquidated to pay creditors based on your timeline of personal and real estate assets. It also inquires if all your assets were disclosed at the creditors’ meeting. You surrender your non-exempt property in a Chapter 7 bankruptcy in return for a clearance of your due and payable obligations.
Consequences of not disclosing assets:
Individuals who are discovered concealing assets from the bankruptcy proceedings will not be granted a discharge. Any property that wasn’t mentioned or was exempt from being sold will still be included in the bankruptcy estate and liquidated to pay creditors while the debtor is still accountable for the debts, as opposed to having the opportunity to file for a discharge again. This implies that even as the bankruptcy case develops, individuals will still be responsible for their debts.
If the bankruptcy trustee discovers that you have hidden assets, he or she may initiate an adversary process to inform the court of this. The court will review your case and deny your discharge if it finds that you concealed assets to delay or defraud creditors. The repercussions of avoiding to declare your assets in bankruptcy, should you be discovered, are significantly worse than losing any one specific asset.
Final thoughts:
A bankruptcy lawyer may create your schedules to ensure that you’ve provided honest and correct disclosures and are aware of the significance of asset disclosure. A bankruptcy attorney can fight to ensure that you get the most comprehensive discharge of your debts.
Welcome to our blog! My name is Yuvraj Kore, and I am a blogger who has been exploring the world of blogging since 2017. It all started back in 2014 when I attended a digital marketing program at college and learned about the intriguing world of blogging.