The recent bankruptcy in Detroit also brings to mind Jefferson County’s own problems with solvency. While cities going bankrupt are very rare, statistics from the U.S. Court system indicate that more than 50 percent of people or small businesses will declare bankruptcies over the course of their live(s). These bankruptcies are generally covered under Chapter 7 of the U.S. Bankruptcy Code.
Among other things, filing for bankruptcy generally requires individuals and businesses to list all of their assets, as well as their debts. An overlooked part of the process, however, is a continuing requirement to disclose certain types of assets that most people may not think of.
For instance, if you file an insurance claim with a company based on homeowner’s insurance, driver’s insurance, or some other type of claim, you may be required to disclose that claim to the court, even though you may have submitted your initial list of assets up to a year earlier.
Failure to disclose assets has many consequences, from delaying the resolution of your bankruptcy to the court requiring you to pay unexpected funds to old creditors. The attorneys at Parkman and White, LLC are experienced in bankruptcies and can provide advice on these and other civil issues.