Law Office of James Keenan
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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 o...
A recent Sacramento bankruptcy bust shed light on one of the basics of bankruptcy. Tell the truth! Filing bankruptcy is a powerful tool. It allows you to eliminate debt you are unable to afford. After filing for bankruptcy creditors can no longer come after you. Lawsuits, collection letters, wage garnishments and even creditor phone calls must come to an end when a bankruptcy is filed. Sounds good, right? Well for those in need, it is.
But with the relief bankruptcy affords comes responsibility. You are obligated, under penalty of perjury, to be honest in your paperwork when you file for bankruptcy. This includes disclosing all your debts. It also includes revealing your assets. All of them. A Sacramento resident who filed for bankruptcy didn't do this. This Sacramento bankruptcy bust was revealed in a recent Sacramento Bee story. He didn't list all his debts. And perhaps more damming, he didn't list all his assets.
Before this man filed for bankruptcy, he acquired lots of debt. Hundreds of thousands in credit card debt. With his borrowed money he bought real estate. This wouldn't be a problem if he payed the debt back. Or even if he intended to repay the debt. But he planned neither. When he filed for
bankruptcy he didn't disclose his new debt or assets. That is a crime. A federal criminal, punishable by years in prison. That's exactly what happened in this Sacramento bankruptcy bust.
Is this a cautionary tale? Maybe for some. But doubtful for most. The message, though, is to be honest in filing for bankruptcy. Nobody wants to be the next Sacramento bankruptcy bust. Simply tell the truth and avoid that fate. Contact my office for a free consultation if you are in need of debt relief and considering filing for bankruptcy here in Sacramento. Make sure you don't become the next Sacramento Bankruptcy bust!
Abbey Lee, the reality TV star of "Dance Moms," filed for bankruptcy several years ago. And the Dance Moms bankruptcy did not go well. Why? She didn't disclose all her assets when she filed for bankruptcy. That's bad! Filing bankruptcy provides protection from creditors. It allows you to eliminate debt you cannot afford. And that's good. But you mu...
One of the most basic tenets of bankruptcy: don’t lie! It’s not a complicated concept but it is is not always followed. Bankruptcy affords filers a broad range of benefits. Chief among them is the ability to eliminate your debt. Since this is debt that cannot be afforded, bankruptcy can be a big help.
But to reap the bankruptcy benefits, there are obligations. Telling the truth is one of those requirements. When you file bankruptcy you must be truthful in disclosing all your personal and financial information. Your income, expenses and assets are all required in preparing your bankruptcy petition and paperwork.
Your income, including your income history, is required as part of the bankruptcy process. Eligibility for certain bankruptcy filings, including both Chapter 7 & 13 filings, depend on the amount of income you earn. To file for Chapter 7 bankruptcy, your income must be lower than your expenses. For a Chapter 13 bankruptcy your must earn more than you spend. Whatever bankruptcy option you need, you must disclose accurate financial facts.
Same bankruptcy basic goes for disclosing your personal assets. When you file bankruptcy you can protect, or exempt, your property. In most consumer cases all property is protected. But you can’t lie. You must reveal all your property in your bankruptcy paperwork. Leaving out a home or car is a bad idea!
In addition to your personal information, another bankruptcy basic is to not lie about your debt. You must list it all in your bankruptcy petition and paperwork. You cannot pick and choose what debts to include in your bankruptcy. You must disclose all debts when you file bankruptcy. Eligibility and affordability of your bankruptcy is dependent on your accurate disclosure of your debts.
Rapper 50 Cent filed for bankruptcy protection this past sumer. In spite of his bankruptcy status, Curtis Jackson, his real name, posted pictures to social media posing in front of stacks of cash. As reflected in my recent post, if that cash was not disclosed, 50 Cent could be breaking bankruptcy laws. The judge has ordered him to appear in court to explain. Even so, 50 Cent posted more photos in and around stacks of cash.
Maybe the stacks of cash are props. Maybe it is, and maybe it is disclosed. But whatever it is, the bankruptcy judge wants to know. If it is a publicity stunt on the part of 50 Cent, the judge won’t be amused. What is funny is comedian Daniel Tosh’s take on flaunting of assets. Take a look at this video.
The incident has certainly garnered attention, as this Wall Street Journal article reflects. Being in bankruptcy obligates a debtor such as 50 Cent to comply with the mandates of bankruptcy law. In exchange, he is entitled to bankruptcy protection. This includes prevention of collection efforts and lawsuits from creditors. One such creditor suit in Mr. Jackson’s bankruptcy is from a sexual assault claim. If he wants to steer clear of that case in bankruptcy, he should steer clear of posting pictures of cash online.
Another potential problem for 50 Cent arising out of posting pictures of cash online, is possible claims from his creditors. If he did not disclose the cash or otherwise report it as income in his bankruptcy case, it is fraud. Creditors can contest the bankruptcy if he is proven to have committed bankruptcy fraud. This means that although 50 Cent is in an active bankruptcy, he might be stripped of its protection if he did not play by the rules. Creditors could collect from him. Lawsuits against him could resume. And his assets could be seized from those he owes. Posing in and amongst piles of cash and posting the pictures on social media may result in the loss of those piles of cash to 50 Cent.