Many bankruptcy filers assume that their life is drastically changed for good once they’ve filed for bankruptcy. They assume they will have no access to credit…ever again. They assume they won’t be able to own property or make real estate purchases. They assume they’ll just need to stick with the car they already have because buying another one will be nearly impossible. To put it simply, they seem to believe that filing bankruptcy means they can no longer aim for financial success now or in the future. This is NOT TRUE. Bankruptcy provides a fresh start. Post-bankruptcy life can very quickly return to a more healthy form of normal for bankruptcy filers who make an effort to repair their credit and move forward.
For instance, I received a question from a bankruptcy filer asking if he was allowed to own property in his own name after bankruptcy. And if so, how long did he need to wait before owning property in his own name? Assuming that the bankruptcy filer did not “own” the property at the time of filing or that they did own the property and included it in their schedule of assets, there’s no problem. Own a property in your name. There’s nothing stopping you. With a few exceptions, you don’t even need to notify your bankruptcy trustee of any assets that are acquired after filing for bankruptcy. Once your bankruptcy closes, you can act as you did prior to the filing in regards to your financial transactions, etc. Make sure your case is closed before putting property in your name. The case is typically closed a few days after received of the discharge notice, but double check with your attorney just to be sure before you take action.
The only problem that I see is if the assumptions made regarding the property at the time of the bankruptcy filing are not true.
If you intentionally kept an asset (the property noted above) out of your bankruptcy petition’s schedule of assets, you broke the law. That’s obviously a problem. Committing this act is considered bankruptcy fraud. The FBI has been known to get a bit fussed about it and have also been known to charge, convict and sentence those who commit such acts to time in what I like to call Club Fed.
If you have questions or concerns regarding what constitutes bankruptcy fraud or how to handle your assets during a bankruptcy filing, please get in touch with the experienced bankruptcy attorneys at southern California’s Westgate Law as soon as possible.