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EVERYDAY CHEAPSKATE (R) Bankruptcy Fraud and a Trip to The Big House PDF Print E-mail
Written by MARY HUNT Creators Syndicate   
Thursday, 20 January 2011 04:38

Dear Mary: After filing a Chapter 7 bankruptcy, what is a person entitled to own? A car? A house? — Frieda, Illinois

Dear Frieda: I know of no ongoing restrictions once a Chapter 7 filing has been completed. I suppose you can own anything that you can pay for or for which you can get a loan. The problem is that the bankruptcy will be reported on your credit report for 10 years. You will have a hard time qualifying for loans at rates you can afford, because your credit score will be trashed.

There are restrictions for how much of what you own you can keep once the bankruptcy filing has been completed. Each state has its own bankruptcy laws, so you need to check with your state for details. Don't be surprised to find that everything you own going into bankruptcy is subject to liquidation to pay your creditors.

I need to tell you that it is a federal crime to lie about what you own, to hide assets or to attempt to shield anything of value from the bankruptcy court. If after completing a Chapter 7 bankruptcy you suddenly have the means to buy a car or a house with money that you temporarily gave to someone else to hold for you or that you conveniently buried in the backyard, you may want to pack your bags. You will be found out, and you'll be headed for a nice long stay in prison, where people who commit bankruptcy fraud go.

Do you have a question for Mary? E-mail her at mary@everydaycheapskate.c om, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. Mary Hunt is the founder of Credit Card Bill With a Credit Card?"