When you file for bankruptcy – whether it is Chapter 7 bankruptcy or Chapter 13 bankruptcy – it’s important to realize that you’re putting yourself under a spotlight if need be. Hide assets or refuse to cooperate and you could end up getting in a whole mess of trouble.
Take, for example, Denny Hecker. Denny filed a Chapter 7 bankruptcy case in Minnesota but has refused to turn over a long list of records requested by the trustee in his bankruptcy case or risk being found in contempt of court. The Chapter 7 trustee asked the judge to find him in contempt of a prior deadline.
In all fairness, Denny probably is a little different from the usual Chapter 7 debtor. He is a former auto dealer with more than a dozen dealerships and filed for Chapter 7 bankruptcy owing more than $767 million. He is also is being investigated by federal authorities on charges of conspiracy, money laundering and mail, wire and bankruptcy fraud.
But put those matter aside for a moment. The trustee requested documents relating to his income and expenses including bank and credit card statements, travel documents and records of money transfers.
None of these requests would be unheard of in a standard Chapter 7 bankruptcy in New York.
If Denny doesn’t turn over the documents he could be looking at jail time and a heavy monetary fine. So what’s the lesson for someone filing for bankruptcy in New York? Realize if you’re looking to discharge your debts in bankruptcy then you’re going to need to be ready to cooperate with the Chapter 7 trustee.
If you’d like to read the article about Denny Hecker (and see his picture) click here.
Photo courtesy of Ariela Beal.
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