The Bankruptcy Law Clinic Blog

Tuesday, March 28, 2017

What the (probable) new Supreme Court Justice has to say about forgeting stuff in your bankruptcy

When you are in a bankruptcy case, the court is making you an offer: in exchange for telling the truth regarding your finances and allowing your  “non-exempt” assets to be liquidated you will be discharged from your debts. 

 Some assets are obvious like the $10,000 in your bank account.  Others are less obvious like your gently used 2014 Toyota Camry that is worth 15k that you still owe 8k on.  Even less obvious are lawsuits that you may pursue, even if you haven't filed it yet.  If you are thinking about pursuing a lawsuit over a car accident, slip and fall, or employment discrimination, you musst tell your bankruptcy attorney (and bankruptcy court) about it from the start. 

Bankruptcy Attorney Brett Weiss in Maryland writes about a similar case for the Bankruptcy Law Network  where future Supreme Court Justice Neil Gorsuch ruled that since the debtor did not disclose her discrimination suit to the bankruptcy trustee, she was not entitled to pursue it. 

If she had, she likely would have been able to continue with the lawsuit and keep the proceeds after sharing them with the bankruptcy court and creditors.

 Each situation is different.  To schedule your free consultation in one of our four Dade and Broward county offices, please call 305-663-3281.  Thanks!

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