When you file bankruptcy, you have to report all kinds of income, assets and property in your Chapter 7, 13 petitions. However, there are numerous things, which even very seasoned legal practitioners forget or overlooked. Most of these practitioners (unfortunately, in many cases their legal assistants in Nevada) only have a pile of forms, and asks only routine questions. As one should know, there is a very broad definition of property and it can have many things under its nomenclature. Here, in this post, we are listing these commonly ignored and missed listings
Long Dormant Accounts.
This is the most commonly missed assets when you have small money lying in one of the account, which you had forgotten, or you had not received any mail from this bank recently. These credit unions or banks had changed their addresses, or you had changed your addresses and the link is missing and never updated.
You may pledged or pawned goods with the pawn shop folks (stay away as much possible, but the way the economy is, sometime it is a necessary thing). Clients think since these goods had been pledged, they are not the real owners of these goods. Of course, a very mistaken belief. A title loan on a car is a good example or some tools of trade pledged. It should be declared, as they may become easily exempt assets. Once a bankruptcy is discharged, it would be almost impossible to reclaim such property from the pawn shop holders.
This is an entitlement as they are still in the pipeline when bankruptcy was filed.
Rights to Alimony?
This includes alimony, support arrearages, and other marital property settlements and right to inheritance.
Life Insurance Proceeds?
This is only if you are beneficiary and filing bankruptcy at the same time.
Clients may have life insurance with a cash value or credit insurance that can be terminated and cashed in at the time of bankruptcy. One should inform his/her counsel of all such “likelihood” in their petitions.