Top 5 assets left of bankruptcy schedules

Here is a list of the top 5 debtor assets left off bankruptcy schedules:

1. Real property to include the debtor home. While most debtors list all their legal and equitable rights to real estate, I list this as number one because leaving this off could have the biggest negative ramifications for the debtor.

2. Tax refunds. Debtors often leave off their accrued rights for the following years tax refund on a Chapter 7 and Chapter 13. This means you could lose your rights to the trustee and your creditors.

3. Potential legal claims and lawsuits. Even if a lawsuit hasn’t been filed prior to filing a bankruptcy, if you have  possible claim or lawsuit, failure to list could mean that you forfeit your rights to bring the lawsuit at a later time. Also means you may lose your right to claim an exemption on your bankruptcy schedules at a later time.

4. Bank Accounts. Debtors consistently fail to list all bank accounts to include business accounts.

5. Old paid for vehicles. The bankruptcy schedules requires you list all assets to include your old clunkers in the backyard.

 

- Stone Law Firm

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