Why You Shouldn’t Hide Assets During your Bankruptcy
A New York City bankruptcy requires you to reveal any assets you have to the court. In certain bankruptcy types, assets are used to repay debt if they are not necessary to your survival. There are situations where a person who owns next to nothing will file a bankruptcy claim, and those who are trying to collect the debt will not get anything. While these cases are rare, the possibility of never having to pay back any debt drives people to lie about their assets. The experienced attorneys from Ursulova Law Offices advise that you never hide assets. The following explains why.
Exempt and Non-Exempt Assets
The assets that people typically try to hide are usually exempt from seizure. A good Brooklyn bankruptcy lawyer will tell you to not worry about these items:
• Vehicles (value limitations apply)
• Unpaid wages
• Public benefits
• Jewelry (value limitations apply)
• Household goods and clothing needed for everyday life
According to a Brooklyn bankruptcy attorney, the following assets are non-exempt:
• Cash, heirlooms and stocks
• Vacation homes and bank accounts
• Inheritances, trusts and lottery winnings
• Valuable collections
• Musical instruments
What Happens When You Hide Assets
When a Brighton Beach bankruptcy attorney files a case, a trustee is assigned to you to oversee the entire process, which also includes asset investigation. A trustee has extensive experience in gathering information and searching records to find anything that you own or have owned. An accidental exclusion is usually not harmful, but if it is found that allowed property was purposely excluded by you, it could result in your bankruptcy being denied. You can also be denied for placing assets in another person’s name just prior to your filing. This scenario will leave you to fight creditors on your own.
If you are facing financial difficulty and want to hold on to as many assets as possible, call a bankruptcy attorney in Brooklyn for a free consultation.