When people file for Chapter 7 bankruptcy, they are legally required to disclose everything they own, everything they earn, and everything they’ve transferred within certain timeframes. However, many people — whether intentionally or by mistake — omit some items. These items call into the categories of accounts, property, transfers and income.
Omitted Accounts (Bank, Investment, Crypto, etc.)
| Example | Why People Omit It | Risk |
|---|---|---|
| A checking or savings account at a credit union not regularly used | “I forgot I even had that account” or “it only has a few dollars” | Trustee may view as lack of transparency |
| A child’s custodial account (UGMA/UTMA) with parent as custodian | “It’s for my kid, not me” | May still count as property depending on access/control |
| PayPal, Venmo, or CashApp balances | “It’s not a real bank account” or “I only use it for transfers” | Must be disclosed as liquid funds |
| Small brokerage account with stock from a former employer | “I haven’t touched it in years” | Trustee may liquidate if it has value |
| Cryptocurrency wallets (Coinbase, hardware wallets, MetaMask) | “It’s anonymous” or “I thought crypto wasn’t traceable” | Major red flag — likely to result in denial of discharge if discovered |
| Foreign accounts or remittance services (e.g. Wise, Revolut, Remitly) | “It’s in another country” or “it’s not part of U.S. system” | Must be reported — omitting foreign assets is considered serious |
People most likely to overlook omitted accounts when filing for Chapter 7 bankruptcy usually fall into the following categories — not because they intend to hide assets, but due to assumptions, forgetfulness, or misunderstanding the law. Here’s a breakdown:
1. People With Multiple Bank Accounts (Especially Dormant or Rarely Used)
Who:
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Gig workers or self-employed with different accounts for business/personal
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Individuals with old credit union or employer accounts
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People who opened multiple accounts for bonuses or overdraft protection
Why They Omit:
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“It only has $20 in it”
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“I forgot I even opened that one”
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“I haven’t used it in years — it’s practically closed”
Risk:
Even small balances must be disclosed. Failing to list all accounts could be viewed as intentional concealment if discovered.
2. People Who Use Digital Wallets and App-Based Accounts
Who:
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Young adults or tech-savvy individuals using Venmo, PayPal, CashApp, Chime, or Robinhood
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Freelancers or gig workers paid via Stripe, Square, or PayPal
Why They Omit:
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“It’s not a real bank account”
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“It’s just for transfers between friends”
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“It’s linked to my main bank account, so it doesn’t count”
Risk:
App balances and transaction histories matter — especially if income or asset transfers are occurring there.
3. People With Small Investments, Crypto, or Foreign Accounts
Who:
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Tech workers or young investors with small holdings in Coinbase, Robinhood, or Binance
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Immigrants with foreign bank accounts or remittance services
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Retirees with minor IRAs or CDs they forgot about
Why They Omit:
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“It’s just $100 in Bitcoin, it barely counts”
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“It’s overseas — no one will know”
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“It’s not accessible without my cousin in [country]”
Risk:
All financial accounts—regardless of size, location, or liquidity—must be disclosed. Crypto especially is closely scrutinized now.
4. Elderly or Disorganized Filers
Who:
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Seniors with long financial histories and paper records
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Anyone without organized financial files
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People in mental or physical health decline
Why They Omit:
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Genuinely forget due to age, memory, or complexity
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“I didn’t remember that pension plan from 20 years ago”
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“I thought I closed that account during my divorce”
Risk:
Even innocent omissions can delay or jeopardize a discharge — especially if the trustee suspects there’s more being hidden.
5. Pro Se (Do-It-Yourself) Filers Without Legal Help
Who:
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People filing without an attorney to save money
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DIY filers using online forms or software
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Individuals who don’t consult a financial advisor
Why They Omit:
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“The form didn’t ask for this kind of account”
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“I didn’t think to include store credit accounts or child’s account with my name on it”
Risk:
Errors in disclosure are very common for pro se filers and may lead to dismissal or denial of discharge.
This is why you should hire a bankruptcy attorney like me.
I can help you understand whether Chapter 7 or Chapter 13 makes sense, know what debts can be wiped out, and determine if you can keep your home, car, and other assets. I will also protect you from bad assumptions and help avoid costly mistakes.
