The bankruptcy filing process includes several important steps that many people may not be aware of. This is one of the reasons why debtors experience challenges when trying to file on their own without a bankruptcy attorney. When you submit documentation to the bankruptcy court it needs to be completed thoroughly in order for your situation to be accessed fairly. This means you should be honest in disclosing details about yourself including assets.
When you file bankruptcy a petition is prepared which gets filed with the court. Leaving out details that make your petition complete could cause your case to be dismissed. This means you may not be eligible for discharge of debts and you would be fully responsible for what is owed to creditors. Leaving out details could lead to fraud. Many debtors have tried to leave out or hide assets when they should have reported them to their attorney. Not reporting all assets may further complicate your case.
An important piece of advice that legal experts give includes disclosing your assets. All assets including debt (creditors), personal property, vehicles, bank accounts, furniture and other items requested upon filing should be reported by the debtor. Serious consequences may be imposed if you leave out information. There are exemptions available to help protect your assets and in many cases, debtors retain ownership of their possessions. Not disclosing assets may affect your payment plan calculations for Chapter 13 bankruptcy or disqualify you from getting debt eliminated in Chapter 7 .