Financial challenges come to many people. Some economic woes are due to a person’s poor choices and bad habits. However, some financial strain comes because of widespread economic conditions or may be a result of a job loss, medical problems or a significant disaster. Bankruptcy should be a last resort if you are feeling burdened by the weight of heavy debt. Though there are consequences when making this decision, it does have its benefits as well. If you are getting serious about filing or bankruptcy, you should be aware of the important steps, including disclosing your assets and property.
Required in the Process
When you file for bankruptcy, the court will require you to disclose your financial information. Withholding any information could mean you won’t be able to discharge the debts with those properties. You could also face steep fines. Worst of all, you could face criminal charges and end up in jail. Make sure when you file that you are truthful and accurate.
When you think of property, you may first consider the home you live in. However, you also need to list things you possess, including the money you have in accounts. Make sure you disclose all of your finances, including money in your checking and savings accounts as well as retirement account and life insurance policies. Detail all your accounts and how much you currently have.
You’ll also want to list those assets you have that are worth money. It’s best to be as thorough as possible when disclosing these items. Such possessions will include furniture, clothing, cars and recreational vehicles, and jewelry. You will also want to include collections such as paintings and other works of art that could hold significant value.
Of course, you’ll also need to list any homes you may own when you file for bankruptcy. Identify the primary home in which you live as well as any rental or business properties you may own. You’ll need to inform the court through documentation of how much these are worth and how much (if any) equity you have in them. As you list all of these items, keep in mind that you will not necessarily lose all or any of them. Your attorney will work with you to determine which of these you can designate as exempt in the bankruptcy.