Q: Do I have to disclose to Bankruptcy chap 7 Trustee the receivable deposited in my account after Bankruptcy is filed ?
For Trucking Company, Load was hauled before Bankruptcy is filed, but broker take 30 to 45 days to pay. In the meantime, Company is shut down and Bankruptcy chap 7 is filed. 30 days later, fund from hauled load is deposited in the account.
Is the fund free from bankruptcy ? Or, do I have to include it to the Bankruptcy ?
A:
This is a pretty simple question.
The bankrupt should have identified the receivable in its sworn bankruptcy schedules, which are painstakingly thorough.
If it did, then the Bankruptcy Trustee should be aware, and the payment should be tendered to that Trustee.
If for some reason the receivable was not disclosed in its Bankruptcy Schedules, the receivable should nonetheless be tendered to the Trustee, and any appropriate Schedules should be amended promptly to show both this paid receivable and any others outstanding at the time of the bankruptcy filing.
Timothy Denison agrees with this answer
A: You should disclose it to the trustee out of an abundance of caution.
A:
In a Chapter 7 bankruptcy, it is essential to disclose all assets and income, including receivables that are due to you. The fact that the load was hauled before the bankruptcy was filed but the payment was received afterwards is a crucial detail. This income is considered part of the bankruptcy estate, as it stems from work done prior to filing.
The bankruptcy trustee must be informed about this receivable, even if it was deposited in your account after the bankruptcy filing. The trustee will determine if this receivable can be exempted or if it should be used to pay your creditors. Not disclosing it could lead to serious consequences, including allegations of bankruptcy fraud.
It's important to consult with your attorney about this situation. They can advise you on the proper way to disclose this income and whether any part of it can be exempted under bankruptcy exemptions. Your attorney will also guide you through the process of amending any filings, if necessary, to ensure full compliance with bankruptcy laws.
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