They say the three most important words in real estate are location, location, location. Likewise, the three most important words in bankruptcy are disclose, disclose, disclose.
I will often have clients tell me "I don't want my car to be part of my bankruptcy, because I want to keep my car and keep paying on it." This comment is misguided on several fronts. For starters, the vast majority of debtors keep all the property they want in a chapter 7 or 13 anyway, so the presumption that including it will cause the debtor to lose the vehicle is erroneous. Not to mention, the trustee would find out about your car anyway, even if it was not on the petition.
Bankruptcy Attorney Detroit, Atlanta Bankruptcy Attorney, Montana Bankruptcy Lawyer,
Another reason the debtor is thinking along the wrong lines is because the debtor is making a "voluntary" petition under oath in which he/she signs under the penalty of perjury that the debtor has listed all his/her assets and liabilities. To intentionally exclude the car could go unpunished, but it could also lead to the debtor having the discharge denied or revoked, among other consequences.
Finally, leaving off a creditor means the creditor does not get notice of the debtor's filing. In immediate terms, it could mean the creditor keeps calling or bothering the debtor because it is not aware of the debtor's filing. It could also mean if you get behind on your car payment during the bankruptcy that the car is repossessed, because the creditor was not aware of the debtor's bankruptcy protection. Long term it could mean a creditor trying to collect against a debtor during or after the debtor's bankruptcy, especially if the debtor's case becomes an "asset case."
The same thing applies with debts to family members. You list all your debts to family members (again, because you have to under the penalty of perjury), and those debts get legally discharged. There is nothing in the bankruptcy code that precludes you from voluntarily paying off a discharged debt to anyone, so you can still voluntarily pay back the family member later.
There are plenty of consumer protections in the bankruptcy laws, and debtor's rarely lose things they really want to keep. Do not assume you know more than your attorney about protecting your assets or which creditors to list. Discuss your concerns and goals frankly with your attorney, and you might be surprised that some of your worries are unfounded.
Peter Bricks is a bankruptcy attorney who practices with The Bricks Law Firm in Atlanta, Georgia. He is licensed in the State of Georgia and the District of Columbia. The Bricks Law Firm is a debt relief agency proudly assisting consumers in filing bankruptcy. However, there is no attorney/client relationship with the reader of this article unless there is a fee agreement. Your situation is unique to you, and Peter Bricks and/or The Bricks Law Firm would need to consult with you individually before we could offer you applicable and accurate legal advice. This article should only be used for educational purposes.
An index of all articles on The Bricks Law Firm website can be found at:
http://www.brickslaw.com/articles-by-category-and-title/
Is Bankruptcy Right For You? Talk to Bankruptcy Attorneys Free and Confidential. Licensed bankruptcy attorneys are available. Attorneys will call you to discuss your case for free. Find out if bankruptcy is right for your situation.
Rating of Cheap Bankruptcy Lawyer
Get Online Application at online Bankruptcy Lawyer.
0 comments:
Post a Comment