Sunday, June 14, 2015

Bankruptcy Schedules Require Disclosure of All Property

When you file for chapter 7 or chapter 13 bankruptcy, you are required to disclose and list all of your property. his includes all types of property, whether tangible or intangible.  This includes property wherever located - (even if it is in another state or country) or that another person may be holding for you. 

Certain property acquired within 180 days after you file for bankruptcy are also included. These items generally are: (a) inheritances, (b), property from a marital settlement agreement or divorce decree, and (c) life insurance policy proceeds.

Rights to Sue/Causes of Action

All actual or potential causes of action you hold at the time of the filing of the bankruptcy case  (i.e. your right to sue someone for damages, etc. including personal injury claims and employment cases.) must be disclosed as an asset in the bankruptcy schedules. This includes cases presently pending and cases you have not yet filed, but may decide to bring in the future.  If you fail to schedule such causes of action, in addition to the above‑mentioned penalties, you may entirely lose the right to bring and lose your recovery for ("judicial estoppel") the cause of action against the other party.