Tell the Truth, The Whole Truth, and Nothing but the Truth When Filing Bankruptcy . . .
By Stephen Otto, Pennsylvania Bankruptcy Attorney on Nov 4, 2007 in Bankruptcy Practice and Procedure
…or you may be at risk of committing a bankruptcy crime. You are required to list all of your assets, debts, and creditors. You cannot pick and choose who and what to list. When you sign your bankruptcy petition, you are swearing under penalty of perjury that the information contained in your bankruptcy papers is a true, complete, and accurate snapshot of your financial situation at the time of filing.
The Federal Bureau of Investigation lists 13 tips to keep in mind when filing for bankruptcy to avoid committing bankruptcy fraud. Some of them include:
- All creditors must be listed, even the ones you intend to pay after the case is filed.
- Many assets are protected, but only if they are listed. It is a crime not to list all property.
- Intentionally incurring debts with the intent not to pay may be a crime.
- The court may disallow a bankruptcy if you misrepresent any facts or otherwise lie.
- Bankruptcy crimes carry punishment by, among other things, imprisonment for up to five years.
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