Filing Bankruptcy Requires Honesty From The Debtor
When an individual is filing bankruptcy the most important thing to keep in mind is to be completely honest with their bankruptcy attorney from the very beginning.
The bankruptcy attorney is a valuable asset as well as an integral part of your team when on the road to becoming debt free.
Bankruptcy attorneys do not like surprises which may be detrimental to their client's case.
The best protection for a debtor and their property when filing bankruptcy is honesty and full disclosure.
Whether it be a Chapter 7 or a Chapter 13 that is filed, when the bankruptcy attorney is told the full truth about the individual's financial situation they can best explore all of the options and plan the best course of action on behalf of their client.
A debtor is required to give full disclosure when it comes to all real estate whether it is in their name or a family member's name.
This is because some debtors will transfer assets or property to a family member prior to filing bankruptcy and try to hide it to retain the property.
This is a big red flag to the trustee who can find the debtor in violation of the US Bankruptcy Code and bring charges against the debtor.
Any and all transfers of property must be disclosed to the attorney.
All bank accounts must also be disclosed.
Any claims the debtor has to money including personal injury claims, as well as a possible inheritance from a deceased family member must be disclosed.
Even monetary gifts must be disclosed to avoid any problems from the trustee during the creditor's meeting.
The trustee during the creditor's meeting will carefully go over the entire bankruptcy petition that was filed with the court and look for any discrepancies.
The debtor will not only be sworn in by the trustee at the creditor's meeting but will be asked at least a half dozen times if the debtor has told the truth, under penalty of perjury, on all schedules of their petition.
A debtor caught hiding assets or property will be in violation of the federal bankruptcy law which is a crime that can be punishable by jail.
In the eyes of the court it does not matter if the property was a gift paid for by a friend or family member, it is still yours and must be disclosed.
Some people feel that if there is no "paper trail" connecting them to the property then they will take a chance and not mention it in the bankruptcy.
This is a big risk and an even bigger mistake.
A US Bankruptcy trustee has quite a substantial amount of resources at their disposal that they can use to uncover any hidden assets or property.
Believe it or not they even receive phone calls from anonymous individuals tipping them off to money or property that someone may be hiding.
The bottom line is filing bankruptcy was created to give honest hard working individuals that are at the end of their financial rope a fresh start.
When it comes to bankruptcy honesty is always the best policy and it begins with your bankruptcy attorney.
Being forthcoming from the beginning will make the bankruptcy process a lot easier for everyone involved.
The bankruptcy attorney is a valuable asset as well as an integral part of your team when on the road to becoming debt free.
Bankruptcy attorneys do not like surprises which may be detrimental to their client's case.
The best protection for a debtor and their property when filing bankruptcy is honesty and full disclosure.
Whether it be a Chapter 7 or a Chapter 13 that is filed, when the bankruptcy attorney is told the full truth about the individual's financial situation they can best explore all of the options and plan the best course of action on behalf of their client.
A debtor is required to give full disclosure when it comes to all real estate whether it is in their name or a family member's name.
This is because some debtors will transfer assets or property to a family member prior to filing bankruptcy and try to hide it to retain the property.
This is a big red flag to the trustee who can find the debtor in violation of the US Bankruptcy Code and bring charges against the debtor.
Any and all transfers of property must be disclosed to the attorney.
All bank accounts must also be disclosed.
Any claims the debtor has to money including personal injury claims, as well as a possible inheritance from a deceased family member must be disclosed.
Even monetary gifts must be disclosed to avoid any problems from the trustee during the creditor's meeting.
The trustee during the creditor's meeting will carefully go over the entire bankruptcy petition that was filed with the court and look for any discrepancies.
The debtor will not only be sworn in by the trustee at the creditor's meeting but will be asked at least a half dozen times if the debtor has told the truth, under penalty of perjury, on all schedules of their petition.
A debtor caught hiding assets or property will be in violation of the federal bankruptcy law which is a crime that can be punishable by jail.
In the eyes of the court it does not matter if the property was a gift paid for by a friend or family member, it is still yours and must be disclosed.
Some people feel that if there is no "paper trail" connecting them to the property then they will take a chance and not mention it in the bankruptcy.
This is a big risk and an even bigger mistake.
A US Bankruptcy trustee has quite a substantial amount of resources at their disposal that they can use to uncover any hidden assets or property.
Believe it or not they even receive phone calls from anonymous individuals tipping them off to money or property that someone may be hiding.
The bottom line is filing bankruptcy was created to give honest hard working individuals that are at the end of their financial rope a fresh start.
When it comes to bankruptcy honesty is always the best policy and it begins with your bankruptcy attorney.
Being forthcoming from the beginning will make the bankruptcy process a lot easier for everyone involved.
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