While assets matter in Chapter 13 bankruptcies too, they are a critical part of every Chapter 7 case, and your lawyer will tell you this if you decide to use Chapter 7 bankruptcy. With this branch, you might be required to hand over some of your assets in exchange for the forgiveness of debts offered through Chapter 7. If you are preparing to use this branch, here are three things to understand about your assets.
You will be asked to disclose every asset you have
One of the schedules you will fill out when filing for bankruptcy is one that asks for you to disclose every asset you have, and this is not limited to only the assets you currently have in your hands. It also includes assets you plan to receive in the future. Assets that fall into this category may include an upcoming tax return you plan to receive or money and assets from an inheritance or lawsuit settlement. You must include every single asset you have, whether it is cash you have in the bank, a car you own, or money you expect to have soon.
The purpose of listing your assets is for the trustee to find out if you have any items that he or she could take and sell. If so, the trustee has the legal right to do this as a way of paying off creditors you owe money to.
The trustee could arrange a visit to see your assets
If there are questions about the assets you have or if the trustee suspects that there is some type of fraud going on in your case, the trustee might arrange a visit at your home to see the things you have. While it is rare for a trustee to do this, there is always the chance that it could happen, and you should be prepared for this.
You will be allowed to keep some things
The other thing to know about your assets is that you will get to keep some of them. The trustee is not going to take your personal items, such as your clothing or furniture. The trustee also will probably not take your car away either or even your house. Your lawyer can help you know which items you can keep if you decide to file.
Before you use any type of bankruptcy, you should take the time to find out the full effects it will have. To do this, talk to bankruptcy lawyers like Charles J Schneider PC today.