Asset Disclosure in Bankruptcy – Honesty

Written and Verified by Ralph A. Ferro, Jr., Esq.

Honesty When Filing for Bankruptcy is Vital

Asset Disclosure in Bankruptcy:

Bankruptcy Fraud – Debor Caught – Hiding Assets

Disclosure of assets is essential when filing bankruptcy. – Don’t hide assets. You should examine the legal representation you choose and always be truthful. I am Board Certified in Consumer Bankruptcy – I protect my clients, their assets but not hiding of assets.

If you need help protecting your assets and are burdened by debt, call me to see if filing for Bankruptcy is an option for you. Don’t hide assets.

Bankruptcy is available for honest debtors who want a fresh start. The United States did not establish bankruptcy for devious individuals to hide assets. You cannot defraud creditors, and creditors have rights, too.

You may not intend to be dishonest or commit fraud when filing for bankruptcy, but as you disclose your financial life, you may feel the urge to fudge the numbers. Or you may want to keep that Mustang convertible you restored, even though you only drive it in the summer, so you’re considering passing the title on to your daughter a few months before you file. Don’t do it.

The court will dismiss the case if you’ve been dishonest. You may even end up with a criminal charge or be ordered to pay fines, depending on what you weren’t honest about.

I have seen dishonesty on the part of the debtor in other cases. The most common reasons I have seen for Chapter 7 bankruptcy denial are:

Dishonesty on the part of the debtor. Debtors are embarrassed about their debts and lie about them.
Some will try to hide assets from the court; that is fraud.
Ineffectual counsel: their lawyer is not an expert in bankruptcy law.

Some of the most common bankruptcy fraud by debtors is:

Withholding financial information
Hiding assets or income
Making false statements
Violating a court order
Filing bankruptcy to avoid paying a specific creditor
Failing to disclose a prior bankruptcy
Defrauding a creditor by hiding or destroying an item that isn’t paid off.
Failure to disclose a lawsuit which may yield a financial recovery. The insurance companies run a search before they issue your check/settlement, and the non-disclosure is discovered. You will not get the settlement, and your bankruptcy will be revoked.

Hiring a Board Certified Bankruptcy Lawyer Protects You

Is your bankruptcy attorney skilled with filing bankruptcy?

I protect my clients and their assets and allow debts to be able to gain financial success.

Bankruptcy is a specialized field of law. I have seen cases fail because the attorney did not understand or represent the client well.

Chapter 13 May Have Worked Better for this Debtor

I am Board-Certified in Consumer Bankruptcy Law, so you can be assured that you will receive expert representation and advice when you hire me.

Chapter 7 Bankruptcy

I have a 100% success rate for all filed bankruptcies

I will not represent someone who is not truthful, filing a bankruptcy for improper purposes, or engaging in a course of conduct that is not in their best interest.

Asset Disclosure Dishonesty Led to Prison

Here is an example when someone thought they could get away with hiding assets.

While in a Chapter 7 bankruptcy and during a 341a Meeting of Creditors, in the Debtor’s asset disclosure, he mentioned he owned a 1957 Thunderbird car and a car storage trailer. Both of these assets were valued at $90,000.

Shortly after, the Debtor claimed that the vehicle was lost or his son with a similar name had taken the vehicle. Subsequently, the debtor created false bills of sales in an attempt to show he had transferred the Thunderbird and the trailer to his son. However, during a DMV search, it was found that the transfer of ownership never took place.

The Bankruptcy Court ruled that the 1957 Thunderbird and trailer were assets of the Chapter 7 Bankruptcy estate. Since these two items were included in his bankruptcy asset disclosure, questions arose. The debtor was not authorized to transfer ownership. You cannot transfer assets without court/Trustee approval.

In the meantime, an IRS Special Agent interviewed one of the debtor’s neighbors. The neighbor advised that the debtor asked his neighbor to store the vehicle and trailer on his property. Within a few months, the neighbor discovered that neither the car nor the trailer was on his property.

This 67-year-old debtor was sentenced to four months in prison for concealing assets and lying under oath. The jury never believed the Debtor’s story about his run-away Thunderbird. The debtor’s son now has a judgment against him for the Thunderbird and trailer of $90K.

I always remind my client’s truthfulness and honesty is absolutely necessary.
If an experienced bankruptcy attorney had pointed this out to their client (if the client disclosed the claim), this could have been avoided.
Assets disclosure is a required part of bankruptcy Assets cannot disappear, you cannot give them away or hide them.

There are many implications and ramifications when you file for Bankruptcy. You should examine the legal representation you choose and always be truthful.

Disclosing assets is essential when filing for bankruptcy. Don’t hide assets.

If you need help protecting your assets and getting free from your financial debts, contact me to see if filing for Bankruptcy is an option for you. Don’t hide assets.