When filing for bankruptcy, the petitioner will need to follow a number of very specific steps in order to be eligible for having some of his debts discharged. One key step in this process is fully disclosing all of one’s assets, including the homes, cars, boats, bank accounts, retirement funds, furniture, clothing, jewelry, etc. that the petitioning borrower owns at the time of filing for bankruptcy. Additionally, the petitioner will need to disclose all of his outstanding debts (including all co-owned debts), such as all credit cards, mortgage and car payments, etc. While failing to accurately disclose all of one’s personal assets can cause his case to get dismissed – which means that his debts will not be officially discharged, it will also prevent these assets from being protected by the bankruptcy proceedings, which means that creditors or a bankruptcy Trustee may be able to seize them at a later point.
Failing to disclose all of one’s assets can have other severe consequences in the event that criminal fraud charges are filed against that individual. Upon conviction of fraud charges, an individual can face jail time, additional expensive fines, and a permanent criminal record that may seriously damage his career. When considering filing for bankruptcy, it is important to point out that:
- Working with an experienced bankruptcy lawyer can make a dramatic difference in the outcome of one’s case.
- Borrowers should disclose all of their assets to their attorneys to prevent future complications to their case.
- There are some assets that will be exempt from bankruptcy proceedings, and a skilled lawyer can help point these out.
If you are considering filing for bankruptcy, be sure to talk to our trusted bankruptcy lawyers first, as we can give you expert advice and provide you with the best options for moving forward. We understand that each case is unique, and we are dedicated to helping those in debt resolve their financial headaches so they can live productive lives.