Hiding Assets After Bankruptcy

A few days ago I received a call from a credit union about one of my clients.  Apparently my client is hiding his motorcycle, which was security for a loan from the credit union.  The credit union asked for my help in getting it back.

Now there's not a lot I can do for the credit union.  For one thing, my client and it are in an adversarial situation and my client comes first.  I did agree to send my client a letter telling him that he needed to either pay for the motorcycle or give it back.  That's the rule with secured debt.  The personal liability for the debt goes away, meaning the credit union can't sue my client and try to collect money from him.  But the security interest the credit union had in the collateral, in this case the motorcycle, is unaffected by the bankruptcy.  It just passes through the case without being harmed.

The bottom line is, if you want to keep your stuff, whatever that stuff is, and that stuff is collateral for a loan, you are still going to have to pay the loan after the bankruptcy.  If you aren't willing to or can't pay, you have to give it back.  Hiding it is not an option.