My Name Isn’t On The Deed/Title. Do I Have To List It?
By Bankruptcy Attorney on Jan 29, 2007 in General Bankruptcy Information
Many times people who are preparing for bankruptcy are confused about assets which are not theirs alone, or which have not been put in their name yet. An example which comes up often is where a relative dies and leaves property to either one person or a group of relatives. The property is still in the name of the deceased person, or has been put in all the names of the heirs. Does this asset need to be listed among assets on an heir’s bankruptcy schedules? The answer is YES.
When a person files bankruptcy, the court, the trustee and the creditors have a right to know everything of value to which the filing person has an interest or owns. There are severe penalties for a person who fails to lists assets or interests. One of the penalties is having the discharge denied; but if the court finds that the failure to list the asset was intentional, the matter could be referred to the FBI for criminal prosecution, and or the person failing to list an asset could be fined up to $500,000.
The good news is that even though you are required to list all your assets, no matter what their character, there is a set of laws called exemptions, which vary according to the state you reside in. These laws are set up in order to protect certain assets owned by a person filing bankruptcy. Many states have very generous exemptions, which protect most things an average person would own. You need to visit with a bankruptcy attorney in your state to determine if you have any assets which would not be protected in your bankruptcy.
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