5 Reasons Why You Should Never Lie to the Bankruptcy Court

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.

Here are just a few reasons why lying during a
bankruptcy proceeding is not a good idea:

  1. 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.
  2. 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.
  3. 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
    creditors.
  4. 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.
  5. 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
financial future.,

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!

By | 2017-12-13T01:55:32+00:00 August 22nd, 2016|Bankruptcy Fraud|Comments Off on 5 Reasons Why You Should Never Lie to the Bankruptcy Court