Asset Protection
When you file bankruptcy, all of the debtor’s assets and Bankruptcy Funds are:
- Set aside to pay Creditors.
- Carefully reviewed.
- Monitored by the Courts.
- Kept separately solely for the Bankruptcy case so as to negate any chance of fraud.
Below is an example through an audit, a lawyer is caught stealing assets when he should be focusing on asset protection. You must hire the right lawyer and be sure that the lawyer is board-certified in Bankruptcy Law.
This lawyer thinks he could get away with using the client’s assets. He uses the money to pay his own personal debts.
GRL-Mesa Investments LLC hires Mr. Broidy for Chapter 11 protection in the Bankruptcy Court.
The bankruptcy case is resolved and dismissal is entered.
As part of the resolution of the case, the sale of bankruptcy assets occurs. The Bankruptcy Court directs Broidy to hold $2,469,926 funds. The purpose of these funds is a distribution to the client’s creditors. Balances are paid to the client. Instead, Mr. Brody transferred $1,937,400 in bankruptcy assets to the client’s creditors. Then, to make matters worse, Mr. Brody steals the remaining $512,526 and pays his personal debts.
$100,000 of the Debtor’s proceeds are found to have been deposited in the lawyer’s personal bank account. Another transfer of $75,000 is made to pay his own creditor.
Mr. Broidy thinks he can transfer funds secretly. Fraudulently, he uses the bankruptcy funds for his debts rather than his client’s debts.
An audit of the missing funds reveals misuse of bankruptcy assets. The audit uncovers Broidy’s fraud. The Court disbars the lawyer. 10-year prison terms exist for this type of fraud.
No tears are shed for lawyer Broidy.
Asset Protection:
Hire a Board Certified Bankruptcy Lawyer
I inform my clients that Honesty is the only policy. Lawyers must be honest. Hire a Board Certified Bankruptcy Lawyer. In this way, you can be sure of a lawyer’s legal expertise and honesty.
Bankruptcy funds and assets are carefully monitored and protected.
Filing for bankruptcy is an important decision. Choose your lawyer carefully. Trust is important for both the lawyer and the client.
Asset protection, learn more: Contact me directly when you need bankruptcy help. Contact Me
