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Petitioner accused of hiding assets in Chapter 7 bankruptcy

As with most things in life, filing for bankruptcy involves paperwork. This paperwork is an integral part of the process, and the finalized copies are likely to become court documents in Chapter 7 proceedings. With this in mind, it is essential that the Kentucky resident filing for bankruptcy is as accurate as possible when completing these documents.

The goal of a Chapter 7 bankruptcy is to discharge debt. As such, the individual is often careful to list each debt. However, another part of this type of bankruptcy is that some assets may be liquidated to help offset these debts. This is the area in which some individuals may struggle.

Recently, one bankruptcy petitioner was accused of attempting to conceal assets from the bankruptcy court. According to the complaint, once financial troubles began, this individual began selling assets and depositing the proceeds into an account that was solely in his wife's name. Additionally, other funds were placed into his children's trust account, and the complaint asserts that he and his wife used funds from these accounts for their own personal use.

While these actions may have occurred prior to filing for bankruptcy and may have been completed without any thought of hiding assets, this individual must now explain his actions to the court. An experienced bankruptcy attorney can assist the Kentucky resident in completing the necessary documents for a Chapter 7 bankruptcy. Additionally, legal counsel can review financial transactions that may have taken place prior to filing to determine if there may be questions that the court will raise.

Source: marinij.com, "Kentfield couple accused of hiding assets from creditors", Richard Halstead, June 30, 2017

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