Can you hide bank accounts in a bankruptcy case?
Hiding bank accounts in a bankruptcy case
Hiding bank accounts in a bankruptcy case is possible for some people, but there are a lot of factors that go into deciding if it's a good idea. When you're deciding to file for bankruptcy, the first step is to find out if you're eligible. If you've more than $3,000 in property and $2,400 in debt, then you can file.
If it's your only option, hiding your bank accounts can work. You can put them into an LLC or other entity that won't be part of your bankruptcy filing. It's not smart to just open another bank account in another name, though—that will be considered hiding assets and could get you into trouble.
You should talk to a lawyer about your options before making any decisions
Bankruptcy lawyers often get asked this question, so it's worth addressing. In short: no, you can't hide bank accounts from a bankruptcy trustee. But there are still some things you can do to protect your assets during the case.
The first thing you should know is that bankruptcy doesn't just mean giving up all of your stuff and living in a cardboard box. The main goal of bankruptcy is to discharge your debts, not to strip you of your worldly possessions (although that may be a side effect).
Bankruptcy Laws
Bankruptcy law gives you some protection for certain types of property, including your home, household goods, clothing, and tools of your trade.
Chapter 7 bankruptcy
When someone files for Chapter 7 bankruptcy (called "liquidation" in legal lingo), any nonexempt property is liquidated and the proceeds are used to pay off creditors. However, if someone has nonexempt assets but wants to keep them anyway, they can file for Chapter 13 bankruptcy instead.
Chapter 13 bankruptcy
In Chapter 13, the bankruptcy court supervises a repayment plan over three to five years. The payments go toward paying off creditors on an equal basis—not here's-how-much-you-owe-on-your-car-here's-how-much-you're-paying kind of thing.
If you have any questions, you can get a free consultation with the Best Attorneys in Utah.
Ascent Law LLC:
8833 South Redwood RoadSuite C
West Jordan, UT 84088
(801) 676-5506
