It Will Be Our Little Secret…(wink, wink)

Because you told me about it.  That is my typical response when I have someone tell me about an asset they have and then ask me “how will the bankruptcy court ever know that I have this asset?”.  During my bankruptcy consultations I always discuss with clients the fact that a chapter 7 bankruptcy is a liquidating bankruptcy.  This means that if you own assets that are not protected under one of Arizona’s exemption laws that you could lose them.

I discuss with people what their assets are and what the likelihood is that they will lose them during the bankruptcy process.  It is at this point that sometimes a client will ask how the bankruptcy court will know about the  asset we just discussed.  It is true that, at least in Arizona, it is very rare for a bankruptcy trustee to come to your home to inventory your assets.  However, if you file for bankruptcy you are obligated to voluntarily disclose all of your assets.  Further, as your bankruptcy attorney, I am required to make sure all of your assets are disclosed and do my best to make sure that what is being reported to the bankruptcy court is accurate.  Failing to disclose assets puts you in danger and me in danger.  There is no reason to step in front of this type of danger – especially when if properly disclosed most assets can be protected.

Disclose, disclose, disclose.  And when in doubt disclose.  If you are truthful and upfront with your bankruptcy lawyer before your case is filed with the bankruptcy court you may be surprised to learn that there is quite a bit your attorney can do to protect your assets.  The worst scenario is when I file a bankruptcy case for a client and then learn about an asset that was not disclosed after the fact.  After the bankruptcy case has been filed my hands are likely tied and you stand a greater risk of losing the asset you were trying to protect.

Bankruptcy can be scary.  I understand that you don’t want to lose assets through this process.  Generally you won’t, but I need to know the entire picture of what is going on to be able to help you through the bankruptcy process.  Help me to help you.  When you come in for your free bankruptcy consultation, be open with what you have and what your goals are.  Most of the time you will be surprised to learn that thing that worries you the most will actually not be that big of a deal.  Give me a call at (480) 420-4028 or shoot me an email at john@skibalaw.com.

Image Credit:  jfrancis