When you file bankruptcy, whether it is a Chapter 7 or Chapter 13 filing, the bankruptcy trustee plays a big role in the process. Once you and your bankruptcy attorney in Cincinnati have filed a successful bankruptcy petition, the bankruptcy court assigns a bankruptcy trustee who will be charged with executing your estate.
In a chapter 7 bankruptcy the trustee will sell your non-exempt property and use the proceeds to pay back your creditors. In a Chapter 13 bankruptcy case, you make one monthly payment to the trustee who then devise it up to your creditors according to the payment plan that the court approves.
There may come a time during your bankruptcy proceedings, typically in a Chapter 13 bankruptcy since they last longer, that you come into some unexpected money.
Should you report this extra income to the trustee?
Will your trustee already know by monitoring you’re checking and savings accounts?
In the majority of cases the trustee does not track your bank accounts after filing, especially if you have a bankruptcy lawyer you are working with. Up front you are required to present several months’ worth of statements for all accounts that are in your name and it is very important to be honest when doing this.
Anyone filing bankruptcy must be completely honest and forthcoming about their accounts, assets, money, and property. You cannot hide or get rid of money or property before or during a bankruptcy without getting it approved by the trustee and courts. A bankruptcy attorney will be able to explain this to you in greater detail and offer you advice on property that you do want to get rid of. Typically those who try to hide assets are found out and if you are caught lying in a bankruptcy petition you could face prison time and heavy fines.
If you are currently in bankruptcy or considering it, it’s very important to get the advice and counsel of an experienced bankruptcy attorney. They will have the prior experience and knowledge of the law that will help you keep all your exempt property, prevent costly mistakes, and help you get back on the road to financial health that you deserve.