Bankruptcy

In Bankruptcy -Tell tell the truth, the whole truth and nothing but the truth

By David Leibowitz, Illinois and Wisconsin Bankruptcy

Here’s the deal when you file bankruptcy.  You tell the truth. You disclose everything.  You keep what is exempt.  The trustee takes everything else and distributes that among your creditors.  In exchange you get a fresh start.

The idea of bankruptcy is to get a discharge of all your debts so you get a fresh start.

But you must keep your part of the bargain!

When you sign your bankruptcy papers, you swear, under oath, that you have told the truth. You swear, under oath, that you have listed all your assets.  And you swear, under oath, that you have told all about your financial affairs.

Not only that, but when you testify to the trustee during your meeting of creditors, you’ll be sworn under oath too.  You’ll be asked to tell the truth, the whole truth and nothing but the truth.

Very bad things can happen if you don’t tell the truth.  This includes things you omit as will as things you might even fib about.

• Your discharge could be delayed
• Your discharge could be denied
• Your case could be referred for criminal prosecution for bankruptcy fraud
• You could be fined
• You could go to jail

Tell your lawyer everything.  Here are some things you should tell your lawyer about – even if you think you don’t have to:

• Cash not in the bank
• Lawsuits you are thinking about filing
• Inheritances you may get
• Debt’s you have recently repaid to your family
• Transfers you’ve made to anyone, particularly for less than the asset is worth.

In bankruptcy, remember the deal.  An honest debtor gets a fresh start.  A dishonest debtor may face serious consequences.

Full post as published by Bankruptcy Law Network on March 03, 2010 (boomark / email).