Many people who live in the United States have foreign assets. That’s especially true with those who immigrated here. Those raise special questions in the context of international bankruptcy law. The most common question is whether those foreign assets are required to be disclosed to the United States bankruptcy court.

You Must Make the Disclosure

The answer to the questions about a disclosure requirement for foreign entities and foreign assets is in the affirmative, even if those goods might be exempt. You must fully disclose those goods.

  • Those would include homes, bank accounts, vehicles, and any other not on American soil.
  • Attorneys have many different ways of discovering goods in another country.
  • Those might involve tax returns, bank records, creditors statements, official foreign documents, or even a spiteful debtor or ex-spouse who might advise the courts of your foreign assets.

Failure to Disclose

  • If you’re filing for a Chapter 7 or Chapter 13 of the bankruptcy code, you’ve already signed off on your bankruptcy petition, and you swore that the information contained in it is true and correct.
  • If you fail to disclose to your attorney or the courts, your bankruptcy claims can be dismissed, and you could face criminal prosecution for committing perjury.
  • If convicted, you’re looking at up to five years in prison and a fine of up to $250,000. An honest petitioner can be discharged with a fresh start. A dishonest petitioner can get dismissed and sent to prison. It’s that simple.

Will the Foreign Asset Be Pursued by the Bankruptcy Court?

An international bankruptcy trustee might or might not pursue a foreign asset. Much depends on the value of the asset. The trustee will consider its value, its liquidity, and whether it’s economically viable to pursue the asset. It might not make good economic sense for the trustee to get involved with it.

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Contact a Los Angeles Bankruptcy Lawyer Today

If you’re thinking about bankruptcy filing it’s important that you tell us everything. We’ll then explain to you how all matters should be handled. We are Los Angeles Bankruptcy Lawyers and we have extensive experience dealing with international courts and helping people and foreign representatives protect their foreign goods.

You can contact us by phone or email for a free consultation. We’ll work with you as a foreign representative and help you find peace from that suffocating debt.

 

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