Thursday’s True Life Personal Bankruptcy Vignette – Unrevealed Rent

April 17, 2013 12:35 am Published by

As I’ve been saying all week, true tales can important lessons. That’s why I’m devoting, this week’s Bankruptcy in Indiana articles to vignettes that emphasize the way the new bankruptcy laws of Indiana (and, in fact, the whole federal bankruptcy system) work.

Not only is today’s tale true, it’s actually about the truth and what an important role telling the truth plays when filing personal bankruptcy. As a longtime debt consolidation lawyer, I’m often called upon to help stop foreclosure, so this story was particularly of interest because it involves a foreclosure.

Here, briefly, is what happened when Mr. C. filed Chapter 13 bankruptcy:

  • C. owned a residential property with rental units. That property was facing foreclosure by Saxon Mortgage, the lender.
  • In the bankruptcy hearing, Mr. C. represented to the court that the property had never been leased out.  In truth, a realtor had secured at least two rental contracts with him.


At all five of our Zuckerberg bankruptcy law offices, one of the first things all of our attorneys for bankruptcy stress with our clients is that the bankruptcy system is a sort of honor system. Our most important job is helping clients gather and organize information about their assets and their income to present in the paperwork we submit to the bankruptcy court. . That financial disclosure process has to be done correctly, and if mistakes are made, not only can the petition fail, but debtors could expose themselves to criminal charges! That’s precisely what’s happening now with Mr. C.  Not only won’t the bankruptcy system protect him, he’s actually broken the law!

Most of the time, as one of my Columbus bankruptcy lawyer colleagues reminds me,  debtors don’t set out to hide anything. They just don’t realize what needs to be disclosed and how.  That’s where our 26 years’ experience in Indiana bankruptcy law really comes into play!
 

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This post was written by Mark Zuckerberg

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