Its not OK to hide assets and file for Bankruptcy

First and foremost, I want to apologize for not blogging for the past month, as we have been taking a large amount of time to redesign this site based on your feedback and we hope you like the new look.  As to todays blog post, I’d like to state something that every person who is contemplating filing for Bankruptcy should know.  Do not lie.  Ever.  Especially when you’re filing for Bankruptcy.  You’re not the first person who thinks they will be able to pull a fast one on the Trustee and you’re not going to be the last.  Several weeks ago, I was at a meeting of the creditors when a debtor was caught with assets that he did not declare on his petition.  Not only had he not declared them, but he also failed to mention this to his attorney.  Obviously the Trustee did not take kindly to this and the debtors bankruptcy discharge may in fact be dismissed.

The lesson to learn from this is to always be truthful with your attorney.  You hired us to help you navigate this course, and it doesn’t make any sense to keep things from us.  If, for instance, you have more equity in your vehicle than you think is allowed, there are ways to bring this to the Trustee’s attention and still be able to keep your vehicle.  The same can be said about money in your bank account.  Again, you are going to ultimately testify to this under oath and under the penalties of perjury.  If you’re straightforward from the initial meeting, then you’ll have much less to worry about, and there will be an exponentially greater shot that your case will be looked at favorably.  So, again, do not transfer things out of your name immediately before seeing a Bankruptcy attorney, and think that you will outwit him/her, the Trustee, or the Court.  Do not move money, take money out, etc.   Be truthful at all times, as cliche as that sounds, and your case will be the better for it.