Legal Question in Bankruptcy in Texas

failure to disclose all asset

i'm a shareholder in a small company where one of my partners is filing chpt 7 but we believe has not disclosed the shares he owns at the company to court. He & the other partner transfered shares to to him to scam the court. thursday is the 341 hearing & we plan to be there to let the trustee know about the scam. meanwhile our shares are suffering due to the incompetance & criminal acts of our partners. Is it correct for the minority shareholders that we are, to confront our partner at 341 hearing, in front of the trustee and let it be known what is going on here? We don't believe in bankruptcy in the first place, and much less if someone is scamming the courts to discharge his debt. Not acceptable.

Asked on 10/11/04, 7:20 pm

1 Answer from Attorneys

Lawrence Maun Lawrence J. Maun, P.C.

Re: failure to disclose all asset

A Chpater 7 debtor is requird to list all assets. There are criminal penalties for not doing so, including fines and jail. There is nothing wrong with your informing the trustee of the stock ownership. The trustee will take possession of the stock, if it has value, and sell it. Larry Maun 713.266.2560

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Answered on 10/12/04, 9:34 am

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