You Must Disclose Everything to the Bankruptcy Court
When you file for bankruptcy attorney fredericksburg va, you must disclose all of your financial information in your bankruptcy petition. This includes not only listing all of your debts, but all of your property as well. By signing the bankruptcy petition, you declare under penalty of perjury that the information is true and correct to the best of your knowledge.
How Someone Will Try to Hide Their Assets
Despite bankruptcy’s clear requirement that filers disclose all property and assets to the court, some people try to evade the system by hiding their property. People hide their property in different ways depending upon the type of property it is. For example, some people transfer the title of cars or real estate to a family member or friend, stuff cash between mattresses, or move expensive sporting equipment to a storage facility. Others don’t physically hide property, but simply do not list everything they own on the proper bankruptcy schedules even though they know they are supposed to do so.
Will the Trustee Find Out?
Bankruptcy trustees are very good at uncovering hidden assets and they will easily find those red flags. Remember, the bankruptcy code gives bankruptcy trustees power to further investigate. All a trustee need to do is review public records, or bank account and tax return records that you are required to provide to the trustee. If you are found to have tried to hide assets, you can face a number of penalties. First, your hidden assets may not be eligible for discharge. Second, your discharge may be denied, which prevents any relief from the bankruptcy process. Third, you may face criminal penalties for perjury, which could land you in jail and/or subject to paying a large fine.
What Happens If the Investigator Finds Out!
If you hide property, and the trustee finds out, the following measures will happen:
The investigator will fill a motion to stop the continuation of the discharge of your debts. This objection is due to the fact that you have committed a fraud. A trustee can object to the discharge of your debts if the trustee shows you committed a fraudulent act, such as lying on your bankruptcy schedules or hiding property from the trustee. If by chance you will not receive a discharge then the trustee will sell the property which you have attempted to hide. You will be then held responsible for paying any remaining amount that you still owe to your creditors. The trustee will also keep a small part of the money coming from the sale which includes assets which you did not exempt.
Lastly, you can also be criminally charged with making a false statement on your bankruptcy attorney fredericksburg va petition. This is because when you sign your bankruptcy, you declare under penalty of perjury that your petition is true and accurate. If you are charged with making a false statement, you may be fined up to $450,000, put in prison for up to five years, or both.
The Andrews Law Group
6316 Five Mile Center, Suite #300, Fredericksburg, VA 22407, United States
(540) 785-0010
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