When you file a Chapter 7 or Chapter 13 bankruptcy case, you are required to disclose all of your assets. Many parents are concerned with what will happen to their minor children’s assets in their filing. The answer depends on your unique circumstances, so it is important to confer with a seasoned bankruptcy lawyer.
In most circumstances, you will be required to list your kid’s assets on Schedule C of your bankruptcy. Your minor children’s assets are probably owned by you, or titled in your name. This includes their clothing, toys, furniture and other similar household items. It also includes ATVs, motorcycles, and bank accounts. However, if your child purchased property with his/her own money, it may not be considered your asset. An example is a teenager that has a job and purchased a vehicle. In this scenario, you can likely prove to the court that the vehicle is not your asset and should not be included in your filing.
It should also be noted that the trustee will investigate any property that has been transferred by you to your child. The timing of the transfer and the type of asset is important. The court will look to see if parents are attempting to hide property before filing their bankruptcy. This is commonly referred to as a “fraudulent transfer” and it can cause problems in your case. If you are interested in learning legal tools for protecting assets, your attorney can explain how state and/or federal exemptions will apply in your filing. You may also be allowed to make transfers to trust funds or bank accounts, depending on how long they have been in place and the contributions made to them.
If you are interested in learning more about filing for bankruptcy protection and how it will impact your assets, contact DeLadurantey Law Office, LLC, to schedule your initial consultation.
The “defender of the little guy,” DeLadurantey Law Office, LLC, handles student loan debt and bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications. Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.