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Asked 12/6/2010

Foreign property and bankruptcy?

I am filing chapter 7 Bankruptcy. I own a property in another country. Can they take it away from me? The value of it is about 20,000 Dollars. I do not have the documents with me that I own it, but it is on my tax record.

 
 
 
 
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Answer 1/3 - Submitted 12/7/2010

Well considering that the property has value and that if you sell it, it could be considered assets if it's not your primary residence. The law allows you to keep your primary residence in most cases but not any ancillary properties. List it and see what your lawyer and the trustee say.

 
 

Answer 2/3 - Submitted 12/7/2010

Thanks! The lawyer did not know what would happen, since he never heard this before... Can they force me to sell it?

 
 

Answer 3/3 - Submitted 12/7/2010

Yes, you must list the property for the bankruptcy. The U.S. bankruptcy code requires that you list all of your property, not just property located in the U.S. Yes, the trustee can take the property from you. Depending on where the property is located it is possible that the trustee may not want to bother with trying to make an assessment or liquidate the property, but you still must list the property.

Failure to list the property to cause the entire bankruptcy to be declared void or invalid.

 
 
 
 
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