The Role Of Debts And Assets In Bankruptcy

: Chris Lee Law Firm

  Filed under: Bankruptcy

The bankruptcy process is made up of two main financial aspects, your debts and assets. While you may be worried about the risk of losing assets in bankruptcy, you may be surprised to learn that a lot of their significance has to do with determining the level of help you need. When it comes to filing for bankruptcy the importance of honest communication about your debts and assets is more important than ever.

The Complete Package

When you file your bankruptcy petition with the court the information you list is used to determine your eligibility and assess your overall financial position. The amount of debt you carry will be evaluated against the worth of your nonexempt assets and income level. The outcome of this measure influences how your case will proceed in terms of debt satisfaction or repayment in a Chapter 13 plan.

It may be tempting to leave out information, fudge details or hide the existence of income or assets in attempt to avoid liquidation. This is a very dangerous idea, as these actions are considered fraudulent. You could find that your case is dismissed and yourself faced with charges of bankruptcy fraud. The bankruptcy process is designed to be as fair and helpful to you as possible, which is why being completely honest about your situation is the only way to obtain the debt relief you need.

If any information regarding your income, debts or assets changes during the course of your bankruptcy case, be sure to contact your Fort Worth bankruptcy attorney right away.

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