One thing that you must take into serious consideration when filing bankruptcy is that you are swearing that everything contained in your bankruptcy petition is true. (Yes, they are signed under penalty of perjury).  And one of the things contained in those papers you’re swearing to, is that you are listing ALL personal and real property, income and debts. If you omit things or are inaccurate about them, your case may be dismissed — or even worse if the court thinks you did it intentionally (that’s called perjury and/or bank fraud, bad things to do in a Federal Court).

Now, the Bankruptcy Courts are not out to punish those who make an honest mistake.   If you accidentally leave something off your papers you can usually correct your papers or explain the mistake to the trustee.  But if the Court discovers that so much was left out they may believe you were being dishonest and can move to dismiss your case.

If you deliberately hide assets or make any false statements, it can come back to haunt you even more than your debt.

Listing Creditors
Why is it important to list all creditors? Because if you don’t, the debt you owe them may not be wiped out by your bankruptcy discharge.  So even if you don’t think you owe a certain creditor anything, list them as ‘disputed’.  By doing so, this creditor will be noticed and legally barred from collecting anything more from you when your bankruptcy is finished…regardless of who is right.

Another temptation might be to omit creditors if they are friends, relatives  or business associates and you don’t want that debt wiped out.  Not a good idea.  The purpose of bankruptcy is to make sure that all of your creditors are afforded correct and equal treatment.  You will be asked by the Trustee while you are under oath “are all your creditors included in your petition.”  Saying yes when they are not is the dreaded “perjury” we talked about earlier.

Include Future Claims for Money Coming Your Way
Not only must you list property you have when you file, but also property that may be coming your way that are already considered assets, such as:

  • an inheritance from someone who has already died but your haven’t received yet;
  • stock options;
  • trust funds for which you are the beneficiary;
  • or tax refunds you have earned but have not yet received from the Government;
  • pensions/retirement funds;
  • Annuities and whole or variable life insurance policies which contain a savings component (not “term” insurance);
  • Judgments payable from lawsuits that you have already won or haven been settled.
  • You must list ANY LAWSUIT you could bring!  Failure to list the lawsuit in your petition is a perfect defense for the defendant to have the lawsuit dismissed!

We try to make sure that all of the assets that you have are protected in your case so that you keep all or most of your assets.  We will discuss what, if anything, may be at risk with you far in advance of the filing of your bankruptcy case.  The important thing is that assets must be listed so the Bankruptcy Trustee has a complete picture of all of your finances.

Don’t Hide Assets or Any Financial Details
If you hide assets or finances and it is discovered by the Court, your case will be dismissed and even worse, you may be prosecuted for perjury and/or bankruptcy fraud.   These are very serious charges that can result in large fines, jail time and in some cases, deportation!  We will do our very best to guide you through the process as smoothly as possible.

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