My wife and I are in a Chapter 7 that was switched over from a 13. This happened because I forgot to tell the Trustee about a large sum of money my father gave me. Now it looks like the 7 won’t be discharged after everything gets sold. I’m wondering if this is normal, fair, or extreme… or could the judge do something worse? I did mention the money to my attorney when we started preparing docs for a 2004 hearing, but not during the hearing itself. I’m worried this could get referred. We’re doing everything that’s been asked of us. My attorney says the BA will likely want to refer it. What have you guys seen happen in these situations? It was a mistake, but I feel like the BA and Judge don’t see it that way. We don’t have any criminal history or anything like that.
I think you’re definitely not alone in this. It happens more than you’d think. I’ve seen cases where it doesn’t get referred, but it depends on the specifics. Since you admitted the mistake and you’re being upfront, I think you’re on the right track. The judge will likely just focus on whether you intended to hide anything or not.
@rej
Yeah, exactly. It’s all about intent. If they think you were just careless and not trying to hide assets, it shouldn’t be a huge issue.
@rej
Same here. My friend went through something similar and they just had to pay back what they didn’t report. It was uncomfortable, but not the worst outcome.
I get your worry, but I think it’s a bit extreme to jump to criminal stuff unless there’s clear intent. If it was just an oversight, I’d say you’ve got nothing to worry about. Keep working with your attorney. They’ll know how to handle it.
@Adley
I agree. It’s more likely they just want to make sure you’re honest. I wouldn’t stress about the criminal part yet. Sounds like a minor mistake.
I had a similar situation, but it wasn’t related to money from a family member. I didn’t disclose an asset early on, and the trustee asked for an explanation. After I explained it, everything went smoothly. Just keep showing them you’re being honest. Hopefully, this works out the same way for you.
@Thorn
That’s reassuring to hear. I was worried things could escalate, but sounds like being honest makes all the difference.
This sounds like a tough spot, but I wouldn’t freak out just yet. It’s not unusual for the trustee to check things like this. If you did everything you were supposed to, you should be fine. Just keep working with your attorney and be as transparent as possible.
@Genevieve
Exactly, as long as you’re cooperating, it should be okay. But yeah, it’ll be up to the trustee to decide if they want to escalate it or not.
It’s normal to be stressed about this. But from what I understand, you should be fine as long as it’s not intentional hiding of assets. Judges are usually looking for mistakes rather than crimes unless there’s a clear attempt to hide things.
@DaviesLLC
Yeah, I agree. If it was just a mix-up or oversight, they’ll probably let it slide. The worst that might happen is paying back what wasn’t disclosed.