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Disclosing All Property When Filing Bankruptcy

In Rhode Island, are you required to disclose all of your property when filing for Chapter 7 bankruptcy?

In a word: Yes.

A Chapter 7 Bankruptcy exists to protect you and your property. However, to receive a discharge of debt, you must disclose all of your assets.

During the bankruptcy process, a debtor will be asked if he is telling the truth. Bankruptcy lawyers will even use the phrase “under penalty of perjury” to remind a client that hiding assets is a violation of federal bankruptcy law punishable by jail.

You see, under Rhode Island bankruptcy law, it makes no difference if:

Your property came as a gift or through inheritance
Someone else paid for it
It is easily hidden and there is no paper trail

Your bankruptcy petition must fully list all of your property.

Understand that the US Trustee has many tools to discover hidden assets. Even calls from “anonymous tipsters” help trustees make sure that a debtor is not attempting to conceal assets.

Disclosing all property to your bankruptcy lawyer is actually in a debtor’s own best interest. Telling your lawyer the complete truth will help him protect you and your property.

Common property interests that require complete disclosure in your Rhode Island bankruptcy petition:

Any claims you have for money, including personal injury claims and potential lawsuits
Gifts you may have received
Assets you disposed of in the last 4 years
Possible inheritance interests after someone has died
Bank accounts/ real estate owned by parents with your name on it
Property you may receive in a divorce settlement
Personal debts owed to you by a friend or family member

Most who file bankruptcy are honest, hardworking people who have run out of options. Having a debtor list all his property in a bankruptcy petition makes the system fair for everyone.

Bottom line: your bankruptcy petition must be complete, accurate, and truthful. Don’t leave out any property.

RI Bankruptcy Lawyer receives Client Distinction Award

by Mark Buckley

Mark Buckley Client Award — Mark Buckley is the recipient of the Martindale-Hubbell Client Distinction Award.

The Martindale-Hubbell® Client Distinction Award is based on Client Review Ratings in the categories of communications ability, responsiveness, quality of service, and value for money.

The results have been compiled and Attorney Mark Buckley has earned a Client Review Rating Score of 4.5 or higher on a scale of 1-5.

Less than 1% of the 900,000+ attorneys listed on martindale.com and lawyers.com have been accorded this Martindale-Hubbell honor of distinction.

Why Call a Bankruptcy Lawyer?

by Mark Buckley

Local Chapter 7 and Chapter 13 bankruptcy laws are complicated. Only a seasoned RI bankruptcy lawyer can keep you out of trouble and save you money.
In Rhode Island, you must choose between state and federal exemption laws. Only a skilled bankruptcy lawyer knows how to protect the most property.
Which type of bankruptcy is best for you? Chapter 7 or Chapter 13. A qualified Rhode Island bankruptcy lawyer can help explain all of your bankruptcy options.
A Rhode Island Bankruptcy Lawyer knows how your recent activity affects your bankruptcy options. Will recent purchases or cash advances hurt your case?
Are reaffirmation agreements necessary to protect your property in a RI Bankruptcy? An experienced RI bankruptcy lawyer knows the answer.

Health Care Costs and Filing For Bankruptcy

America may be a world leader in many areas, but healthcare affordability is not one of them. According to a recent survey conducted by Health Affairs, American adults, more than the citizens of any other industrialized nation, avoid critical healthcare because of the high cost of coverage.

This comes as no surprise to bankruptcy lawyers, and certainly not to those who have filed for Chapter 7 bankruptcy relief due to unavoidable medical bills.

Health Affairs’ survey revealed several interesting facts—

one-third of American adults neglected recommended medical care when obviously ill (whereas in Germany, only one quarter of adults went without care.)
one-fifth of Americans reported having trouble paying off medical bills (barely 10% of Europeans and Canadians cited similar troubles.
almost one-third of Americans surveyed agreed on the confusing nature of insurance policies and documentation.
America reported the widest margins relative to available healthcare between income levels, with the poorest citizens receiving the least care.

Most of my clients have at least some medical debt at the time I file their bankruptcy petition. For some, it is the primary reason they need to file for bankruptcy relief. Many had either no health insurance, or poor coverage, at the time of a major illness or accident. I’ve seen medical bills range from a few thousand dollars, to hospitalizations costing over $ 100,000.

If you face a mountain of unpayable medical debt, give me a call. I can advise whether it makes sense to file for bankruptcy in your particular situation.

RI Bankruptcy Law: Median Income Figures Change Again

RI bankruptcy lawyers have new income guidelines to determine who qualifies for Chapter 7 bankruptcy relief. On November 1, 2012, the US Census figures became effective for all new consumer bankruptcy filings. Other than for 3-person households, it became slightly more difficult to qualify for Chapter 7 bankruptcy relief for every other household size in Rhode Island.

Below are the median income figures that I use for my Rhode Island clients who need to file for bankruptcy protection:

1 person household $ 45,945 (down from $ 47,798)
2 person household $ 60,538 (down from $ 61,506)
3 person household $ 75,306 (up from $ 68,909)
4 person household $ 82,086 (down from $ 88,990)
Add $ 7,500 for each additional household member above a 4 person household

As a reminder, these are gross income figures. To determine whether you qualify for Chapter 7 bankruptcy relief, we take your trailing 6 months of gross income from all sources (except Social Security and unemployment benefits), multiply it by two and then compare it to the chart above.

While its easier to qualify for a Chapter 7 bankruptcy with gross income lower than the median, in many cases, you may still qualify with income slightly higher than the median.

Bottom line: Its impossible to forecast whether it will become easier or more difficult to file your Chapter 7 case in the future. Even if you are not ready to file your case now, I can run an analysis on your family’s income to see if your income is presently low enough to qualify for debt relief.