Dealing with Property from Mexico and Foreign States

When you are filing for bankruptcy, you may not know which forms of property you must disclose to the lawyer. While the lawyer has encouraged you to be fully upfront and honest about discussing any property that you own or have transferred, you may still wonder whether it is required that you tell a lawyer about certain forms of property. Perhaps you are afraid of telling a lawyer about property that you own in another state or country. Maybe you are worried that you will lose the property. Depending on the facts of your case, you may not lose property if you disclose it to the trustee. It is always in your best interest to be fully honest in the property that you disclose to the trustee.

As the United States continues to grow more diverse every year, there are more bankruptcy estates that deal with foreign assets. There have been numerous cases where individuals work in the United States and have loved ones who live on property within Mexico.

In the event that a lawyer has a client who has property in a foreign state, the lawyer should find out all he or she can about the property. Otherwise, a trustee may step into the picture and may attempt to transfer the property to pay creditors. You still must disclose your property to the trustee. If you do not disclose this property, then the trustee may take it upon himself or herself to simply sell the property and get rid of it.

If you disclose the property to the trustee, then the trustee may be able to find ways to avoid selling the property. The trustee will give you the opportunity to pay any of the liens on the property so that you can retain ownership of it. Otherwise, the trustee will simply seize the property and sell it.

A client can get into serious trouble for failing to disclose property that he or she owns in another country. The client may be subject to penalties such as high fines and jail time for failing to disclose ownership of certain pieces of property.

If you are a debtor who is from another country, remember that you should always tell your lawyer about all property and income that you have from other sources outside of the United States. Even if the property may not be worth a lot of money, it is still important to be as frank and honest with the trustee as possible