Former Major League Baseball player Lenny Dykstra has been sentenced to 6 ½ months in prison because he hid assets from his bankruptcy trustee, according to the Austin American-Statesman. The former ballplayer, who spent 12 years playing for the New York Mets and Philadelphia Phillies, filed for bankruptcy in 2009. His bankruptcy filing claimed $31 million in debt and $50,000 in assets. He has been accused of hiding at least $200,000 in assets from the trustee; most of the hidden assets are apparently gloves and other memorabilia from his playing days. Dykstra apparently sold some household fixtures for $8,500, and said that he had put them into storage. He also sold some baseball memorabilia for $15,000, not reporting either the items or the money in his bankruptcy filing. The judge said that he lowered the prison time to account for the time Dykstra has already spent awaiting sentencing, and because he has been ordered to perform 500 hours of community service and $200,000 in restitution.
Are you struggling with debt and considering bankruptcy? Contact an experienced Dripping Springs bankruptcy attorney today to discuss the bankruptcy process.
In the western district of Texas, there were over 11,000 non-business bankruptcy filings in 2011. About half of those fillings were Chapter 7 filings, in which debtors are able to discharge many of their debts with no further payment, while also keeping most of their assets. However, income limits apply, and many debtors will have to file Chapter 13, in which case a payment plan will be entered into to pay a portion of the debt before it is discharged. In either case, it is important to report all debt, assets, and income on the bankruptcy filing. In your bankruptcy case, there is a trustee, whose job it is to oversee the details of your proceedings, such as liquidating assets, making payments to creditors, and so on. In some Chapter 7 cases, you may be allowed to act as your own trustee, but in more complicated cases, you will typically be appointed an impartial trustee. If your bankruptcy trustee or the judge in your case finds that you have hidden income or assets from the court, your case will most likely be dismissed, with no discharge of debt. Furthermore, you could subject yourself to criminal penalties for bankruptcy fraud.
For many people, bankruptcy is a good way to get out from under a debt burden that has become unmanageable. However, when you go through the bankruptcy process, it is extremely important to understand the process, and to follow the law. Bankruptcy is actually an extremely complicated area of law, and while many people attempt to undergo the process on their own, it is always a good decision to speak with an attorney. An experienced Dripping Springs bankruptcy attorney can help you understand all of your options, and whether bankruptcy might be right for you. He or she can also make sure you understand the process, and that you know both your rights, and what will be expected of you. They can also serve as your guidance on how to get the best possible outcome from your bankruptcy proceedings.
If you feel like you are drowning in debt, if you have recently had major financial changes, and you just can’t seem to keep afloat, contact the dedicated Dripping Springs bankruptcy law firm of Brian Daniel. The Daniel law firm has helped countless people to get a handle on their financial situation, so that they can move on with their lives. Brian has represented many people as they move through the bankruptcy process, getting the discharge of debts that can relieve so much pressure. For more information and a FREE CONSULTATION, contact the Daniel Law Firm today at (512)615-3569.