Author Box
Articles Categories
All Categories
Articles Resources

Filing Bankruptcy Requires Honesty From The Debtor

May 09, 2012 | Comments: 0 | Views: 156

When an individual is filing bankruptcy the most important thing to keep in mind is to be completely honest with their bankruptcy attorney from the very beginning. The bankruptcy attorney is a valuable asset as well as an integral part of your team when on the road to becoming debt free. Bankruptcy attorneys do not like surprises which may be detrimental to their client's case. The best protection for a debtor and their property when filing bankruptcy is honesty and full disclosure. Whether it be a Chapter 7 or a Chapter 13 that is filed, when the bankruptcy attorney is told the full truth about the individual's financial situation they can best explore all of the options and plan the best course of action on behalf of their client.

A debtor is required to give full disclosure when it comes to all real estate whether it is in their name or a family member's name. This is because some debtors will transfer assets or property to a family member prior to filing bankruptcy and try to hide it to retain the property. This is a big red flag to the trustee who can find the debtor in violation of the US Bankruptcy Code and bring charges against the debtor. Any and all transfers of property must be disclosed to the attorney. All bank accounts must also be disclosed. Any claims the debtor has to money including personal injury claims, as well as a possible inheritance from a deceased family member must be disclosed. Even monetary gifts must be disclosed to avoid any problems from the trustee during the creditor's meeting.

The trustee during the creditor's meeting will carefully go over the entire bankruptcy petition that was filed with the court and look for any discrepancies. The debtor will not only be sworn in by the trustee at the creditor's meeting but will be asked at least a half dozen times if the debtor has told the truth, under penalty of perjury, on all schedules of their petition. A debtor caught hiding assets or property will be in violation of the federal bankruptcy law which is a crime that can be punishable by jail. In the eyes of the court it does not matter if the property was a gift paid for by a friend or family member, it is still yours and must be disclosed. Some people feel that if there is no "paper trail" connecting them to the property then they will take a chance and not mention it in the bankruptcy. This is a big risk and an even bigger mistake. A US Bankruptcy trustee has quite a substantial amount of resources at their disposal that they can use to uncover any hidden assets or property. Believe it or not they even receive phone calls from anonymous individuals tipping them off to money or property that someone may be hiding.

The bottom line is filing bankruptcy was created to give honest hard working individuals that are at the end of their financial rope a fresh start. When it comes to bankruptcy honesty is always the best policy and it begins with your bankruptcy attorney. Being forthcoming from the beginning will make the bankruptcy process a lot easier for everyone involved.

The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.

Source: EzineArticles
Was this Helpful ?

 
0
 
0
 
Rate this Article
 vote(s)
Feedback
Print
Re-Publish

Article Tags:

Filing Bankruptcy

,

Bankruptcy Attorney

,

Bankruptcy Attorneys

,

Bankruptcy

,

Bankruptcy Code

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 303

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

Many people that are considering filing bankruptcy typically look at every alternative in an effort to avoid the process. There is so much bad press out there on the damage it does to one's credit

By: Lisa Michelle Jonesl Finance > Bankruptcy Personall June 11, 2012 lViews: 177

Lately, the topic of filing bankruptcy has become commonplace in social circles. Everyone, rich or poor, probably has someone in their neighborhood that is filing bankruptcy and facing foreclosure.

By: Bob P Jonesl Finance > Bankruptcy Personall May 29, 2012 lViews: 172

Recently, the student loan crisis has made its way to the front and center of the media. Currently, the student loan debt in the United States has surpassed an incredible $1 trillion and with no end

By: Bob P Jonesl Finance > Bankruptcy Personall May 24, 2012 lViews: 163

If you are currently bankrupt we explain what happens if you receive an inheritance payment from a will or trust. As a bankrupt person, if you receive any kind of windfall, this money must be paid to

By: James Fallal Finance > Bankruptcy Personall May 24, 2012 lViews: 242

Ever since the economy turned south back in 2008, many Americans are facing severe financial woes. Many of these usually hard-working folks are now unemployed or have had to settle for a lower form

By: Bob P Jonesl Finance > Bankruptcy Personall May 24, 2012 lViews: 173

Bankruptcy isn't just caused by excessive shopping. Three of the biggest reasons Americans are filing bankruptcy are medical debt, job loss and unexpected expenses due to an act of nature.

By: Chris A. Harmenl Finance > Bankruptcy Personall May 21, 2012 lViews: 183

On the outside, these two topics seem to be completely opposite. In reality, they actually have a lot in common. When someone graduates from college, they're getting a fresh start on life and heading

By: Bob P Jonesl Finance > Bankruptcyl June 11, 2012 lViews: 163

Lately, the topic of filing bankruptcy has become commonplace in social circles. Everyone, rich or poor, probably has someone in their neighborhood that is filing bankruptcy and facing foreclosure.

By: Bob P Jonesl Finance > Bankruptcy Personall May 29, 2012 lViews: 172

Recently, the student loan crisis has made its way to the front and center of the media. Currently, the student loan debt in the United States has surpassed an incredible $1 trillion and with no end

By: Bob P Jonesl Finance > Bankruptcy Personall May 24, 2012 lViews: 163

Ever since the economy turned south back in 2008, many Americans are facing severe financial woes. Many of these usually hard-working folks are now unemployed or have had to settle for a lower form

By: Bob P Jonesl Finance > Bankruptcy Personall May 24, 2012 lViews: 173

There are a few choices for individuals who are in a financial crisis to reduce or eliminate their debt. There is debt consolidation which requires the individual to take out a loan to cover all of

By: Bob P Jonesl Finance > Bankruptcy Personall April 20, 2012 lViews: 143

Now that April 15 has come and gone, just about every American should have filed their taxes. People who are employed will usually get a refund. For those that are buried under a mountain of credit

By: Bob P Jonesl Finance > Bankruptcy Lawyersl April 20, 2012 lViews: 178

Discuss this Article

comments powered by Disqus