The Ch7 Trustee can take your tax refund or any other unliquidated claims that are owed to you that are not completely exempt (i.e. claim for a personal injury not yet settled, etc).
The Ch7 Trustee can send an appraiser out to value each item of personal property that you own and will possibly seize your household goods or other personal property to sell and pay towards your debts, unless exempt.
The Ch7 Trustee can pursue or take any income, receivables, or other entitlements due and coming to you AFTER filing this bankruptcy that are not exempt (this includes equitable or future interests in a future asset).
The Ch7 Trustee can take your retirement or pension, unless specifically qualified under sections 401(a), 403(a), 403(b), 408 and 408(a) of the Internal Revenue Code (T.C.A. 26-2-105) or otherwise exempt.
The Ch7 Trustee can take any money that people owe to you at the time you file that is not exempt.
The Ch7 Trustee may be able to get any assets that you do not presently have in your possession but may have a right to or may receive after the filing of your Chapter 7 petition that are not exempt (i.e personal injury, settlement claims, divorce settlements, etc).
The Ch7 Trustee is entitled to any interest in property that would have been property of the estate if such interest had been an interest of the debtor on the date of the filing of the petition and that the debtor acquires or becomes entitled to acquire within 180 days after such date–(A) by bequest, devise or inheritance; (B) as a result of a property settlement agreement with the Debtor’s spouse, or of an interlocutory or final decree of divorce; or (C) as a beneficiary of a life insurance policy or of a death benefit plan (Sec 541(a)), unless exempt.
The Ch7 Trustee may be able to take your vehicle if you recently purchased it and the lien was recorded within 90 days of the filing of your petition (unless recorded within the statutorily required time). The lien can be set aside, and the trustee can sell your vehicle to pay off debts owed to your creditors. The same may be true regarding your home and a mortgage or refinancing that has been recorded within 90 days of filing your petition.
Cash advances or payday loans totaling more than $750 taken within the last 70 days may not be dischargeable.
Credit card debt or other consumer debt incurred within the 90 days before filing may not be dischargeable.
Debts incurred within 90 days of filing for “luxury goods or services” (especially if for more than $500) may not be dischargeable, and you will still owe balances on that debt after filing your bankruptcy.
A Chapter 7 bankruptcy can only be filed once every 8 years. Therefore, only a Chapter 13 bankruptcy would be available after a discharge in a Chapter 7 bankruptcy until that time period has run. Even though you can file a Chapter 13 bankruptcy very soon after a Chapter 7 bankruptcy, you would have to wait 4 years to file a Chapter 13 bankruptcy that is eligible for a discharge. Thus, if you file a Chapter 13 bankruptcy before 4 years from the date you filed the Chapter 7 bankruptcy, the Chapter 13 debts would not be dischargeable.
**Not to be acted on without the advice and the retention of an Attorney.**
This list is just some of the pitfalls and dangers of filing a Chapter 7 bankruptcy, but is not all-inclusive.