Re: couple questions before filing BK

Posted by LadynRed (199.91.33.254) on August 02, 2004 at 15:13:31:

In Reply to: couple questions before filing BK posted by goingbroke on August 01, 2004 at 14:49:32:

The Trustee's job is to administer the bankruptcy estate. When you file for BK, EVERYTHING YOU OWN on that date and prior to it becomes your bankruptcy estate and is basically out of your hands and into the Trustee assigned to your case. The Trustee is not there for YOUR interests, the Trustee is there to look after the interests of the CREDITORS. If you have non-exempt assets that can be taken to pay creditors, that must be turned over to the Trustee for distribution. You are not allowed to liquidate assets nor are you allowed to enter into any new debt during your bankruptcy.

If you haven't any non-exempt assets, the Trustee issues a notice 'abandoning' the estate thereby telling creditors there is nothing available to liqudate to pay them and they can't file any claims.

ALL of your assets get listed on the bankruptcy forms, the Trustee doesn't need to come to your house and look, even if they had the time and the staff to do so. You are swearing, under oath, that what's on those forms is true and correct - lying will get you charged with fraud. The Trustee is also looking to make sure no one DOES commit fraud.

I really wish people would do some estate plannning. Putting their kids names on bank accounts is almost always a bad idea. Its easy, yes, but it can be dangerous. A limited power of attorney is a MUCH better and safer way to do things.

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