As previously discussed, when you go the U.S. Bankruptcy Court for help for a fresh start in bankruptcy, you must be prepared to tell the entire story.
A Florida couple filed for bankruptcy. In their bankruptcy petition, the Debtors claimed that they owed approximately $2.9 million to creditors, and had assets worth less than $13,000.
What did they fail to disclose?
- Women’s gold and diamond Rolex watch
- Gold ring with 2 carats of diamonds
- Diamond earrings
- Royal Dalton China
- Waterford crystal
- 2 George Rodrigue “Blue Dog” lithographs, signed and numbered.
You cannot walk around with a Rolex watch on your arm, diamonds on your fingers, diamonds on your ears, eating on Royal Dalton China, drinking out of Waterford goblets and looking at your beautiful paintings on the wall and avoid paying your creditors.
Keep in mind the Bankruptcy Court can look into any insurance policies you have in place which lists specific insured items.
Moral of Story: Honesty is always the only policy.