It is extremely important for you to be honest about your assets when you’re filing for bankruptcy. You can’t pick and choose what assets or debts to include while filing, you have to list any and all you may have.
But remember, just because you list an asset on your bankruptcy schedules and statements that are filed by your attorney with the Bankruptcy Court does not mean that you will automatically lose that item of property to the Trustee administering your case. On the contrary, in all likelihood there is a law on the books that would protect that property from being lost to your bankruptcy Trustee, thereby making it “exempt.”
Once in a while people concoct elaborate plans to make a property or asset “vanish” by getting rid of it at the last minute, or by selling it to a friend or family member with the intent to purchase it back. This is a bad idea. For example, a couple from Iowa tried to cheat their creditors out of nearly $400,000 when they were filing for bankruptcy. The couple tried to unload some of their assets by selling them to friends and family members just before their bankruptcy was filed and intended to purchase them back once the case was over. The couple was caught, spent time in jail, was ordered to pay almost $400,000 in restitution to the United States Trustee, and was also required to pay some hefty fines to their creditors.
Nothing can possibly be worth the price you’ll have to pay if you’re caught trying to hide assets when filing bankruptcy.
Before you decide to file for bankruptcy, it’s important that you consult with an attorney. The lawyers at Miller and Miller have the knowledge and experience to make your Bankruptcy a streamlined process. Feel free to contact us through our website or by calling 414-326-9231 today.