When filing for bankruptcy in Chapter 7, 11 or 13 in Massachusetts, there a number of responsibilities that the petitioner has and must comply with. Please take a moment to read this article if you are considering filing for bankruptcy in Massachusetts or if you have a petition with the U.S. Bankruptcy Court currently:
Report any Change of Address
The bankruptcy court will need to know if you have changed your address. Report any changes immediately to the attorney handling your case as this information will need to be updated with the bankruptcy court in Massachusetts.
Report any Change in Financial Status
Whether you have a pay rate or salary increase or decrease, have received a gift, property as a life insurance beneficiary, or had some other change in your financial situation these changes must be submitted to the bankruptcy court in Massachusetts. Failing to provide proper and timely notification of changes in your finances to the bankruptcy court might result in severe penalties later for fraudulent behavior or dismissal of your case.
Report any Changes in Property
If you sell or lease property that was previously reported as your asset when filing for bankruptcy, you must report that sale to the bankruptcy court. The reason for the requirement for reporting changes in assets, such as the sale or lease of property, is that the bankruptcy court wants to know of any changes to asset status, that is, from the value of the asset being tied up in real property to the value becoming liquid. Once again, a failure here to report a change in an asset could result in dismissal of a case or be perceived by the court as fraud.
Report any Receipt of Settlements
If you are lucky enough to be on the receiving end of an insurance or other settlement, you will want to ensure that this influx of income is reported to the Massachusetts Bankruptcy court for the same reasons as previously stated.
Provide Proof of Your Income
At the outset of a bankruptcy petition it is common for an attorney to request from you your current income. However, this initial request must be backed up by actual proof of income in the form of paystubs or other means.
Provide Six Months of Checking and Savings Account Statements
Our attorney will require your last six months of checking and savings accounts in the form of bank statements. These statements will be reviewed to ensure that no income is left our or unreported to the bankruptcy court and to avoid any unnecessary errors in the income, asset and expense reporting process.
Provide a Statement of Retirement Account(s)
Your most recent retirement account statement must also be provided. While retirement accounts are generally not considered part of a bankruptcy estate, our office will review your statement to ensure that the type of account is protected from bankruptcy under current federal law.
Provide Last Two Tax Returns
Both the previous years tax return and the most recently filed tax return will be collected by our attorney. The goal here is to review the petition for bankruptcy for any errors by cross referencing to previous and current tax filings.
Fraud in Bankruptcy Court
It goes without saying, but I will say it anyway. A Massachusetts bankruptcy petitioner who provides false information to a Federal Bankruptcy Court may expose themselves to federal criminal liability. In addition to criminal liability for filing fraudulent information or false information, the bankruptcy petition or case (once accepted by the bankruptcy court) may be dismissed.
The Section 341 Meeting of the Creditors
You must attend the section 341 creditors meeting in bankruptcy court. Our attorney will accompany you to this meeting, and explain to you what you can expect at this meeting. Often, the creditors on a typical bankruptcy case will not show up to the 341 meeting.
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