Every year there seems to be more cases of people concealing details about
their assets in bankruptcy. Too many people are under the impression they
will lose what they have to creditors when they file, and feel the need
to hide it in order to protect it. Such actions are considered unlawful
and you can face serious criminal charges. Need more encouragement and
understanding of why it is important to be honest when disclosing details
about your finances?
Consider the following points:
Concealing information, hiding assets, or not being honest when completing
paperwork is considered bankruptcy fraud. There are people currently in
prison for failing to provide complete information about their income,
property, and debt obligations. Some who tried to hide their assets ended
up losing them because they were not honest in the beginning.
Learn what happens when someone gets caught. As previously mentioned, you
can face prison time of up to 5 years for each count of fraud if convicted.
Fines and penalties could be as much as $250,000 or more. Your case could
get dismissed and you may be liable for repaying all of your debt you
tried to get discharged.
When you fill out paper work during bankruptcy, you are signed under penalty
of perjury. Basically, you are swearing to the court all information you
provide is true. Fraud charges may come about if the court determines
you gave false statements intentionally.
You can avoid bankruptcy fraud by learning options from an experienced
Dallas bankruptcy lawyer. There are various exemptions available to help legally protect your assets
and property. Be sure to fully disclose information about your creditors,
income and even assets you anticipate on receiving in the near future
(inheritance, settlement from a judgment, insurance payout, etc.).