Foreign Bank Accounts and BK

[willdufauve]

Should lawful personal savings accounts in foreign banks be disclosed in bankruptcy?

In one case the Euro bank failed and was nationalized more than a year ago; all the funds were withdrawn but the accounts still exist on paper. The account in a second bank is active but only has maybe 2 or 3 hundred euros left in it. I paid euro federal taxes on the interest under the laws of the country the bank is in so there is no record of involvement with the IRS or any US entity; it's a foreign matter. I can withdraw the remaining cash with my foreign bank ATM card if I need to but I don't want to have the account shut down.

I'll add these were intended as retirement accounts with no illegalities or attempts to hide anything. As a European citizen I'm legally allowed to have these accounts. My concern is if I list in my filing it might be seen as a huge red flag to the Trustee, but if I don't disclose and it came out through my long distance phone bills, etc. I could face sanctions.

[newbie2]

I don't believe the BK code differentiates assets as being only those held in the US. You should disclose the accounts, even if they have minimal amounts in them. They would probably be exempt cash since there isn't much.

[kornellred]

If you earn money in the United States, you must have a social security number. You must be a US citizen to have a social security number, or, if you are a citizen of another country working in the USA, you can receive a restricted social security card, as long as you are properly documented.
A US citizen who puts money in a foreign bank does so for only one reason - to protect it from taxes or other confiscatory fees. If they file for bankruptcy and do not list foreign deposits, they are hiding assets. Period.
Assuming you are actually a European citizen, with a restricted social security card and working in the United States, you are subject to the same reporting requirements as anyone else filing for bankruptcy. You do not get a free pass.

[willdufauve]

A US citizen who puts money in a foreign bank does so for only one reason - to protect it from taxes or other confiscatory fees.

You do not get a free pass.

And, you do not get a free pass on a hostile and poorly informed response.

I'm a dual US/European Union citizen with the same citizenship rights and unrestricted Social Security card as any other US citizen. There are many reasons why such a person would put money in a foreign bank account. In my case, it's for my retirement, as I said in my opening post ("I'll add these were intended as retirement accounts with no illegalities or attempts to hide anything.") and to help support an older family member. I paid all state and federal income taxes in the US when I earned the money. The IRS is fine with that. Maybe you posted without the life experience or capacity to understand the subject matter?

[kornellred]

Well, of course, Mr. Dual Citizen, your situation changes nothing. You still have to report all of your assets.

Any other free countries on the face of the earth allow dual citizenship (which you did not mention in your original post)?

[willdufauve]

And you are an expert because...?

[johnnycakes]

Any other free countries on the face of the earth allow dual citizenship (which you did not mention in your original post)?

Umm - yea. Quite a few actually. Especially the EU countries.

Anyway,

Report the foreign accounts. File statements for them just like a US account. If questioned by the trustee answer honestly. If you are talking about small amounts it probably will not be an issue.

[kornellred]

I'm no expert, believe me. Not even when it comes to bankruptcy - and I have 2 bankruptcies under my belt!