A common question I get from Minnesotans who are suffering from debt and considering filing for bankruptcy relief is: “how does the court know how much stuff I have and what it is worth?” The answer is very simple. We tell them.
Disclosing Your Assets in Minnesota
One of the requirements necessary to obtain a discharge in bankruptcy is to disclose all of your assets, You do so on the official bankruptcy schedules A/B. This includes physical assets like real estate, cars, electronics, clothes, jewelry etc., and also financial assets such as bank accounts, retirement accounts, investment accounts, or even contingent assets such as a pending lawsuit or claim against another party.
Value your Assets on Schedules A/B
The benefit of working with an experienced Minnesota bankruptcy attorney, is that your attorney will be able to help you value your assets on schedules A/B, and let you know if asset will be exempt or non-exempt (i.e. whether it is protected in the bankruptcy or effects your Chapter 13 Plan). It is a bankruptcy trustee who will be reviewing your assets and not the court in most circumstances, and an attorney with experience dealing with the local Minnesota bankruptcy trustees is essential to getting the most stress-free and best result from your bankruptcy.
The Penalty for Not Disclosing Assets
This is why it is essential to be honest with your bankruptcy attorney. There is nothing wrong with using the assets that you do own to do some planning and maximize your exemptions prior to filing a bankruptcy. The penalty for not disclosing an asset you own to your trustee is a revocation or denial of your discharge. There are potentially criminal actions if you make any fraudulent claims to the court or your trustee. When you discuss these items with an experienced bankruptcy attorney, we can tell you exactly what is protected, and what (if anything) could be an issue when your asset is not protected.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
When the time is right, when you are ready to get your life back, reach out to Minnesota’s largest and nicest bankruptcy law firm, by going now to LifeBackLaw.com or give me a call at 1-800-551-3292. You will be thankful you did.
