Most of our critical assets are at risk during a financial crisis, including your home, your cars and any of your sentimental possessions. You may even try to take drastic measures to ensure you maintain your possessions.
However, if you are pursuing bankruptcy, it’s critical to be transparent about all your assets, even your most sentimental one. If you aren’t, it may fall under bankruptcy fraud.
What classifies as fraud in bankruptcy?
When you file for bankruptcy, you go through a process called asset discovery. Essentially, it is a detailed, completed list of all your debts, income, assets and financial history. The court requires applicants to honestly fill out the lists and keep transparency through the process.
However, some people may try to conceal assets, even unintentionally. They may try to give away assets, list them under another person’s name or even play favorites about which assets they are willing to sell.
If you commit fraud during the bankruptcy process, there is a strong likelihood that you may suffer from multiple consequences, including:
- Not receive a bankruptcy discharge
- Assets will be sold off but there will be no exemption from the debt.
- Certain debts will never be discharged, and there could be complications if you try to re-file.
- Possible jail time and major fines associated with criminal charges
No one should have to suffer more while seeking financial relief. The best strategy for your bankruptcy claim is to work with an attorney to ensure all your assets are clearly defined and ready for the courtroom.