Tuesday, July 14, 2015

Property Acquired after Bankruptcy Filing

Normally your bankruptcy estate consists only of the property you own on the date of the filing of your bankruptcy case. Certain property though that you acquire after filing for bankruptcy are part of your bankruptcy estate. Supplemental schedules need to be prepared and filed with the Bankruptcy Court.

Certain Property Needs to be Disclosed

In chapter 7 and chapter 13 bankruptcy, you are generally under the obligation to notify the Bankruptcy Court and your bankruptcy trustee if you acquire any of the following items within 180 days of the filing of your bankruptcy petition: 

          a. inheritances
          b. divorce property settlements
          c. proceeds of life insurance

In such event, you should advise your bankruptcy attorney at once so that he may properly advise you and prepare the proper schedules that need to be prepared and filed with the Bankruptcy Court. If you are in a Chapter 7 case, you may consider converting the case to Chapter 13.

Causes of Action - Including Personal Injury and Employment Cases

In a Chapter 13 case, you should also file supplementary schedules in your bankruptcy case if you acquire cetain types of property, including actual or potential causes of action (ie. including personal injury and employment cases) that you acquire at any time after the bankruptcy case is filed. This is very important, as if it is not disclosed in a supplemental schedules, you may be barred from pursuing the cause of action ("judicial estoppel").