By James Keenan on Thursday, 18 June 2020
Category: Bankruptcy Benefits

Bankruptcy Obligations

 Bankruptcy obligations are many. But so are the benefits. Some of the most basic requirements are to disclose all your debts. The same goes for all your assets. Listing your debts is obvious. The purpose of filing for bankruptcy is debt relief. Listing your debts in your bankruptcy paperwork is a given. It is how your creditors are notified of your bankruptcy filing.

But just as important is listing your assets. Bankruptcy obligations require you disclose all your assets. This includes all of your property. And I mean all of it! If you don't list all your stuff, you might not be able to keep it. Even worse, you may not be entitled to bankruptcy benefits. Intentionally concealing your property may land you in legal trouble. Big legal trouble. This news story depicts the story of a doctor who hid her assets from bankruptcy. Bad idea. Don't do it is the lesson.

Bankruptcy law allows you to retain your possessions. Normally for consumers filing bankruptcy, this includes all their property. But bankruptcy obligations require you disclose all your assets, even if you have more property than you are allowed to keep. "Lending" property to a relative or "forgetting" a car accident claim are bad ideas before filing for bankruptcy. Be honest. You have to be. Filing bankruptcy is done under penalty of perjury. You are swearing to tell the truth just by signing your bankruptcy paperwork.

As I have told clients over the years, take care of the bankruptcy and the bankruptcy will take care of you. Amongst the most important bankruptcy obligations is to be truthful. Bankruptcy is a powerful legal tool. It can afford filers many benefits. Your debt can be eliminated or diminished with only your signature. Make sure, though, you are signing off on the truth.