In bankruptcy counseling, does this go into debt in bankruptcy? Should I grab these as property too? I often hear people say. The question is whether real estate in general in Korea should be taken as property in bankruptcy and sold to pay off debts.
This is a fairly straightforward issue if you own a house or apartment that you rent or lease, but it can be a problem in bankruptcy if you own chattel, personal property, or family property that is only in your name. In some cases, you may not even know the property exists because it’s only in your name.
U.S. bankruptcy law defines all property to which a bankruptcy filer has legal or equitable title, wherever it may be located at the time of bankruptcy, as being within the scope of property to be disposed of in bankruptcy. So even if you are not the physical owner in Korea, if you are legally registered as the owner, the property is subject to foreclosure.
If you don’t tell the truth because you’re afraid that your property in South Korea might be sold, you’re committing a serious crime and could be at a significant disadvantage in your ability to obtain permanent residency or citizenship. When you file for bankruptcy, your assigned bankruptcy trustee will conduct a very intense investigation into your property, income, and debts. If this process reveals the existence of undeclared foreign real estate, it becomes a big problem because it raises suspicion that there was a purpose to hide the wealth.
Even if you declare property in Korea, not all of it will be sold to pay off your debts. In one of the cases we worked on at our law firm, we had a client who had a small plot of land in South Korea with her parents’ graves. The bankruptcy trustee sought to sell the land, but our lawyers had previously defeated the trustee’s and the court’s attempts to sell the land on the grounds that the sale would have little value and would not help repay the debt, that the bankruptcy filer could not afford to store or dispose of his parents’ ashes separately, and that the failure to properly care for his parents’ ashes was culturally offensive and caused our client extreme emotional distress.
In addition, the foreign court has jurisdiction over the property in the foreign country, which means that neither the U.S. bankruptcy court nor the U.S. bankruptcy trustee can force the sale, and the cooperation of the foreign court must be sought. In some cases, the U.S. bankruptcy trustee cancels the sale because the foreign court has no jurisdiction, or because the sale is uncooperative or doesn’t go well, citing overwhelming workload.
Over the course of your life, you may end up with a lot of debt for a variety of reasons. Bankruptcy can help you get this financial fresh start. However, bankruptcy is never an easy process. It is highly recommended that you speak with an experienced and skilled bankruptcy attorney about the many variables that can arise in bankruptcy. If you have any questions about bankruptcy, please contact mail@songlawfirm.com으로.