Financial challenges such as poor investments may result in a bankruptcy, such as a Chapter 7 bankruptcy or a Chapter 13 bankruptcy. These methods of debt relief may require debtors to surrender their personal assets, although a range of bankruptcy exemptions are available. Wisconsin readers may be interested to read about the following story concerning a former foreclosure merchant with a sizable judgment against him.
A Waukesha County judge has ordered the merchant to surrender some of his assets to a bank that has a $2 million judgment against the man. The order required the merchant to deliver the required materials to the bank within a day or he would be sentenced to 60 days in jail.
The merchant defaulted on a $2 million loan from First Business Bank-Milwaukee in 2010, along with two of his partners. The purpose of the loan was to operate an assisted-living center, which the bank foreclosed on to collect on the loan. While the man claims that he has surrendered enough assets to the bank and that he is now broke and can’t afford to turn anything else over, the bank claims the man, who was once wealthy, is now hiding assets.
The man is currently being investigated by federal and local authorities for bankruptcy fraud. He used to be a major player in local foreclosures, and his business allowed to amass a great deal of wealth and luxury items.
When declaring bankruptcy, it’s vital that you give the court a true accounting of your assets. Anything less can lead to bankruptcy fraud charges, which can lead to time spent in jail. You must abide by a judge’s orders in your bankruptcy case.
Source: Journal Sentinel, “Foreclosure merchant surrenders items to creditor,” Cary Spivak, Feb. 1, 2013
