Question regarding fraud....

[HHM]

This is long, but we have noticed some things about my sister in law and her husband who filed bankruptcy and would like some clarification.

When they filed for bankruptcy, we know they gave fradulent information. Are we correct in believing that, for instance, with jewelry, you can keep your jewelry up to a certain amount and the rest has to be sold? Or are we wrong. My sister in law and her husband stated they only had $1,500.00 worth of jewelry and we know that's a lie.

They also included other fraudulent info, but I am trying to make this brief.

The bankruptcy court stated they wanted my sister in law the find a job. She is 31 and healthy and perfectly capable to work - she chooses not to. She told them she was looking and she hasn't. She doesn't want to work - isn't wrong? And they have already defaulted on more of their bills and have planned a trip to Mexico for the fall. How can you do that after filing bankruptcy - is this sort of stuff allowed? Does the court wash its hands clean of you once you're done?

We feel they didn't use bankruptcy as a way to help themselves, but as a way to pay for bills they just didn't WANT to pay.

1. What you think jewelry may be worth and what it would be worth in BK are different things. Trustee's are not a fan of taking jewelry because there is too much uncertainty as to what it would "liquidate" for. Thus, this is a non issue.

2. There is absolutely no employment requirement for bankruptcy. The trustee may have been simply inquiring about your SIL's employment, but she is not required to work in order to file BK.

[SocalBroke]

Wow, this may be out of line but I can't help reading this thinking the OP has an axe to grind of some sort and is looking to use this for some sort of revenge. Deciding to file bankruptcy is a very difficult and personal thing to do. Their credit will be ruined for 10 years and they will face the stigma whenever they go to rent an apartment, apply for a job or even open up a banking account. The trustees are trained professionals who will be able to weed out any fraudulent activity. If you can't support your relatives, why not, at the very least, let them be and trust the system will work the way it is supposed to?

[HHM]

Wow, this may be out of line but I can't help reading this thinking the OP has an axe to grind of some sort and is looking to use this for some sort of revenge. Deciding to file bankruptcy is a very difficult and personal thing to do. Their credit will be ruined for 10 years and they will face the stigma whenever they go to rent an apartment, apply for a job or even open up a banking account. The trustees are trained professionals who will be able to weed out any fraudulent activity. If you can't support your relatives, why not, at the very least, let them be and trust the system will work the way it is supposed to?

Well, BK is not that "horrible", it DOES NOT Ruin your credit for 10 years, and generally has very little impact on your employment prospects. But you are correct, BK is not something most people do on a whim or "plan" to do.

[SocalBroke]

Well, BK is not that "horrible", it DOES NOT Ruin your credit for 10 years, and generally has very little impact on your employment prospects. But you are correct, BK is not something most people do on a whim or "plan" to do.

Ok, not to nitpick or start an argument (especially with a moderator ) but to be clear, I did not use the word 'horrible'. For me it was a very difficult decision and one that I thought long and hard about. Granted 'ruined' might be a strong word regarding their credit but I am speaking as someone who had a FICO in the mid 700s and could pretty much pick and choose the terms of my credit cards. Those days are over for me for a LONG time I am sure (which is probably a good thing).

Lastly, with the economy the way it is, employers are able to be much more picky as to who they hire and many, if not most, run credit checks. I fail to see the reason of a company running a credit check if the results aren't going to figure into their hiring practices somehow and a bankruptcy on their record does not exactly scream responsibility.

Again, I hope this doesn't come across argumentative. It's just that for me anyways, it was a very difficult decision and the thought of a vengeful relative trying to use it to harm me just irks the living daylights out of me.

[denisejohn65]

I'm a single mom. Who gets 1200.00 in alimony a month and 457.00 in retirement from x. I bought a condo for 77,000.00 a car still owe 10,000.00 and have roughly about 25-30 tho in credit card debt. I lost my job and I occoured alot of debt while I was going through my divorce. I don't over due it...I live a simple life. I'm honest. Now look at me.....I have my hearing July 20th 09. I feel so low......worthless... I worry day and night about problems that may a rise....All I want is this to be over!!

[dingdong]

You are going to be fine. If you are under median (sounds like you are) and

have mostly cc debt, you should fly through your 341 w/o a blip.

The TT will probably ask you some very basic questions, like did you sign your petition, has anything changed, maybe a couple more, then say 'good luck to you"


then you just wait 60 days or so and you are done.

Don't stress too much, I know it is scary, but it will be over soon.

THe 341 is a cake walk for filers in your situation. Nothing to be scared about unless you made a lot of large purchases on credit right before BK, then you might have a creditor object, but if you didn't you are golden.

[denisejohn65]

No I have not made any large buys. I have not even used any of those cc in months. I have some medical bills on there too.Do you know how long I have to pay my HOA's?...my lawyer said to keep paying them or they could sue me. I will ask him when I see him.I moved out of the condo to my bf's...I don't know if that matters or not. I stopped the insurance too. I still pay the electric bill. That is scary that it could take a year to forclose. That means I would still have to pay all that in Hoa and the electric bill???????Right...for maybe a year??? OMGOSH

[dingdong]

How upside down are you?

Could you possibly do a deed in lieu of foreclosure?

I don't know how the bk laws would apply to that kind of transaction, but it might speed up the process of getting the bank to take the property back.

you would probably have to wait until discharge or the lender files a Motion for relief, but it might be a possibility?

Maybe someone with more experience in mortgage and BK will chime in and offer advice.