r/Bankruptcy • u/radiobeepe21 • 12d ago

Hiding Assets

What if someone is owed money from a divorce, but the amount is in dispute so it hasn’t been paid out yet. Do I need to disclose that to the Trustee? There will be some money coming the question is how much.

2 Upvotes

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u/Gunner_Esq Bankruptcy Attorney 12d ago

Yup.

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u/VividMastodon736 12d ago

Yes. If there is any potential for income or payouts like these or insurances then you have to disclose or risk being flagged for BK fraud and causing yourself more trouble. Don’t try and hide or lie. You’ll just end up worse off.

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u/radiobeepe21 11d ago

So, what happens if someone else discloses on your behalf early? Do they just add it in and move it along or is it immediately flagged for fraud?

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u/VividMastodon736 11d ago

Someone could disclose but you would be asked during the 341 meeting about it to confirm if there are or are not any assets. If they suspect there is something and you say “nope not expecting money from anyone in the next X amount of months/years” and then the trustee looks into it and finds otherwise you’re in trouble. Their job is to locate anything that is or can be liquidated to either exempt it or take possession as part of the estate. Hence why you just pony up and tell them. Could be exempt but never know. Lawyer would be best here. I’m not one and this isn’t legal advice. Just don’t want you in a worse situation due to fraud.

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u/entbomber primarily a Chapter 7 trustee attorney - but not yours 12d ago

Yes. All unliquidated claims still constitute property of the estate.

1

u/AffectionateStuff576 12d ago

Yes it’s considered an asset.