Disadvantages to Chapter 7<\/p>\n
1. Dealings with family members. First, if you have repaid family members over the past year (and in certain circumstances over the last three years) over certain dollar amounts, the Chapter 7 trustee will initiate legal proceedings against the family member to reclaim the funds received by the family member over the last year. This is called a preference since you have chosen to repay a family member instead of your other creditors. In fairness to the other creditors, the trustee will reclaim the preferential payment and disburse it pro-rata amongst all creditors during your Chapter 7 case. In addition to payments to family members, any transfer of assets to a family member in the three years prior to your Chapter 7 bankruptcy filing must be disclosed and discussed with our attorney before you file your case. If an asset is transferred to a family member, the Chapter 7 trustee will likely initiate a lawsuit against the family member in order to set aside or rescind the transfer<\/p>\n
2. Recent credit activity. If you have made charges in the last 60-90 days prior to your Chapter 7 filing, such charges may be deemed fraudulent in your Chapter 7 case. There is a presumption of fraud for any and all charges made immediately prior to your Chapter 7 filing date. If you have made charges prior to filing your Chapter 7 case and the creditor files a lawsuit against you for fraud, you may be forced to repay these sums as well as interest and attorney\u2019s fees incurred by the creditor to sue you.<\/p>\n
Because Chapter 7 is a liquidation bankruptcy, all non-exempt assets will be sold by the Chapter 7 trustee and the proceeds distributed to your creditors. If you fail to disclose an asset in your Chapter 7 case, you will likely lose the asset even if you could have claimed an exemption to protect the asset.<\/span><\/strong> Assets that people sometimes fail to disclose in Chapter 7 are automobile accident claims, employment\/disability claims, inheritances, interests in trusts, and money owed pursuant to a promissory note or other debt. Chapter 7 bankruptcy trustees are experienced in locating assets and have access to databases that can track property ownership throughout the United States. I liken a Chapter 7 trustee to a forensic accountant in terms of their ability to find undisclosed assets.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"What happens to an individual debtor who files a Chapter 7 bankruptcy (petition to discharge unsecured debts and retain possession of exempt assets) and fails to disclose assets to the bankruptcy court? From a helpful article written by Jeffrey Erich […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[],"tags":[],"class_list":["post-9432","post","type-post","status-publish","format-standard","hentry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p6Z0e-2s8","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/9432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/comments?post=9432"}],"version-history":[{"count":0,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/posts\/9432\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/media?parent=9432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/categories?post=9432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sequenceinc.com\/fraudfiles\/wp-json\/wp\/v2\/tags?post=9432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}