Monies Owed to You and Bankruptcy

On the bankruptcy petition you will list all of your assets, and this includes anything owed to you, or potentially owed to you, even if you believe the funds or asset is not collectable. For example, if you lent you neighbor $1,000, but you believe that he is unlikely to pay you, it is still important to list the money owed as an asset in your bankruptcy. If you have a case with non-exempt assets, the bankruptcy estate may have an interest in the funds lent. And depending on the amount of monies owed to you, the bankruptcy estate may pursue you neighbor for the lent funds. 

Other funds typically owed to a bankruptcy debtor on the date of filing include: child support arrears, tax refunds for the year of filing, property tax refunds, back-pay for social security, earned unpaid wages or commissions, and settlement claims. Depending on the case, some of these assets will have exemptions and will be protected from the interest of the bankruptcy estate. Some of the assets, however, may not have an exemption, and therefore become property of the bankruptcy estate. 

Your bankruptcy attorney will ask you if anyone owes you money, this includes: friends, family, institutions, stores, and the government. It is best to let your attorney know of any funds owed to you so it can be properly disclosed to the bankruptcy estate. 

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Excluding assets from the petition is not an option. Best course of action is to list all assets and exempt the asset you can. Even if you believe that the funds are not collectible, it is best to disclose to the bankruptcy estate. Your bankruptcy attorney can assist you in determining which assets will become property of the bankruptcy estate, and which assets will be exempt. Contact the attorneys at LifeBackLaw and see us at www.LifeBackLaw.com and let us help you get your life back.