There are too many debtors who think they can file bankruptcy protection
and feel the court doesn’t need to know everything about their finances.
The bankruptcy code was established with federal regulations providing
a fair option for debtors who truly need financial help. When individuals
abuse the law for their own benefit, they can face serious consequences,
including criminal charges.
Reasons why lying during a bankruptcy proceeding is a bad idea:
- You may still be responsible for paying debt obligations and not qualify
for discharge. Your debts will not be wiped out and creditors can still
pursue you for payment.
- You may be required to sell or turn over personal property you tried to
hide to creditors to settle outstanding debt, even during an active bankruptcy
case. In many cases, if you were honest in the beginning you may have
been eligible to use state and federal exemptions to legally protect assets.
- Any discharge you received can be revoked by the trustee during or after
your case. This means you can once again become responsible for repaying
- If you file bankruptcy again in the future you may not be able to discharge
debts from a case in which you were not being truthful.
- You can face serious criminal charges for bankruptcy fraud. This most commonly
happens when debtors attempt to conceal assets. Bankruptcy fraud is a
federal crime that carries stiff penalties, including up to $250,000 in
fines and up to five years in prison.
Being deceitful during bankruptcy proceedings is illegal, and it can cost
you far more than what it’s worth. By working with an experienced
bankruptcy lawyer, you can learn more about your unique financial situation,
available options, and how to best position yourself to protect certain
assets and achieve an outcome that helps you on the path toward a brighter
If you have questions about filing bankruptcy in the Dallas / Fort Worth area,
contact Allmand Law Firm, PLLC for a free financial empowerment session. Our legal
team is here to help!