As everyone knows, Toyota has been having issues with their vehicles lately. Millions of Toyota vehicles have been recalled due to faulty pedals and floor mats. If you are filing for bankruptcy and own a Toyota, it is important to talk to a lawyer about the Toyota recalls.
It is possible there are already class action lawsuits you are involved in which you may even be unaware of, or you may already have a claim against Toyota for defects or injuries suffered due to your vehicle.
When you are filing for bankruptcy, you must disclose all of your assets. If you have a claim against Toyota, or are a part of a class action lawsuit, it is considered an asset you own and must be disclosed in your bankruptcy case. If you’re in the situation where you didn’t know about the claim at the time you disclosed your assets, you need to update your paperwork with it when you do find out.
If you are going to someday recover money from a claim, who gets the share depends on the details of your specific case. However, your chances of keeping a share of the money are much better if you disclose it to the court, rather than the court discovering that you kept it from them.
For example, in 2007 a Utah couple lost a $50,000 personal injury settlement to the bankruptcy trustee when they failed to list the pending lawsuit as an asset when they filed Chapter 7 bankruptcy. The couple would most likely have been able to keep the settlement if they had disclosed the asset to the court, but they had knowingly concealed it and lost it instead.
It has been reasoned that if the filer can prove that they had absolutely no knowledge of the asset or there was no obvious reason to conceal it than they could keep it. The trial judges have great discretion in deciding if someone has purposefully hidden an asset or not. The lesson though is this; assets that should be yours can be easily taken away if you fail to disclose everything to the bankruptcy court.
If you own a Toyota and are filing bankruptcy, talk to a lawyer immediately to make sure you are aware of any class action lawsuits you are involved in and are disclosing all assets in your bankruptcy filing. After all you have been through already with a faulty product, the last thing you want is to lose access to the settlement payout you deserve.
Filed under Bankruptcy and Your Assets, Bankruptcy requirements, Personal Bankruptcy Tips by 
What is Chapter 12 Bankruptcy?
On this Tennessee Bankruptcy Blog, we regularly go over the most common types of personal bankruptcies, Chapter 7 and Chapter 13. However, there are less-known types of bankruptcy protections as well, such as Chapter 9, Chapter 11, and Chapter 12 bankruptcy. In this post, we will focus on Chapter 12 bankruptcy, which may help some of you Tennessee farmers out there. Commonly known as the Family Farmer Chapter, Chapter 12 is designed specifically to meet the needs of family farmers and fishermen.
To be defined as a family farmer for Chapter 12 bankruptcy, you must meet certain criteria. The farmer’s debts can not be over $1.5 million, which does not include debt owed on a home unless it is directly connected to the farming business. At least half of the farmer’s gross income must have been earned from farming in the year prior to the filing, and at least 80% of the debt must be farm related. Also, the farmer must make an income that is large enough to be able to make payments under a Chapter 12 plan, before the bankruptcy petition is approved.
The Basic Process: To file for Chapter 12 bankruptcy, the debtor must first file a bankruptcy petition at a cost of $200. Within 15 days after filing, the debtor must give a complete list of their liabilities and assets, and must pay a deposit of $500 to the appointed Chapter 12 trustee. Within 90 days the debtor needs to file a repayment plan telling how their creditors will be repaid. The debtor must also file a financial report every month which shows disbursements and receipts. Within 20 to 60 days after the bankruptcy petition is filed, the debtor must attend a meeting where they are questioned by the trustee and creditors and suggestions on the repayment plan are made. Within 45 days since the repayment plan was filed, the court will either approve or reject the plan.
Chapter 12 bankruptcy is very similar to Chapter 13, but has a higher debt ceiling than Chapter 13 because farmers and fishermen must sustain higher debts than workers with normal wages. Debtors must repay all or part of their debts within three years, or five years if they can persuade the court of extenuating circumstances.
Just like I would suggest to those thinking of filing a Chapter 13, I advise anyone that is considering filing bankruptcy under Chapter 12 to consult and with an experienced bankruptcy attorney.
Filed under Chapter 12, Other types of bankruptcy by
