BAPCPA REQUIRED NOTICE NO. 3: Tell The Truth, The Whole Truth, And Nothing But The Truth

22 May BAPCPA REQUIRED NOTICE NO. 3: Tell The Truth, The Whole Truth, And Nothing But The Truth

The 2005 bankruptcy law changes require all debt relief agents (lawyers) to give every potential client certain notices, the third one warns against fraud and concealment. Bankruptcy debtors must tell the truth by listing all their debts, income, assets and expenses, but they always had to do that, and the law didn’t add.

By signing the bankruptcy petition, people are swearing/affirming that they are telling the truth, the whole truth and nothing but the truth. Bankruptcy petitions are filed under penalty of perjury which means that if someone doesn’t tell the truth about their finances, assets, debts and income, they are subject to criminal prosecution, in addition to denial of discharge, and possibly loss of assets.

It is natural that people are afraid of what they will lose in bankruptcy, but those fears are often unfounded. It is important to face the law without worrying about lying and that means knowing what the consequences of the law require of you. Sometimes people try to hide something that either isn’t a problem, or it might be a problem that can be addressed by an experienced bankruptcy attorney. Sometimes things are left off through mistake just because people don’t fully understand what is required to be disclosed in the bankruptcy documents.

If you are thinking of filing for bankruptcy, it is imperative that you speak to an experienced attorney to discuss you options, your property and how bankruptcy might affect you. Filing for bankruptcy isn’t the only goal – making it through without unforseen problems is what you are really after.


( 342(b)(2) of the Bankruptcy Code)


If you decide to file bankruptcy, it is important that you understand the following:

1. Some or all of the information you provide in connection with your bankruptcy will be filed with the bankruptcy court on forms or documents that you will be required to sign and declare as true under penalty of perjury.

2. A person who knowingly and fraudulently conceals assets or makes a false oath or statement under penalty of perjury in connection with a bankruptcy case shall be subject to fine, imprisonment, or both.

3. All information you provide in connection with your bankruptcy case is subject to examination by the Attorney General.Your failure to provide complete, accurate and truthful information may result in the dismissal of your case or other sanctions, including criminal sanctions.

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Concentrating in Consumer Bankruptcy Law since 1988; Wake Forest Law School JD 1987 Law Office of Susanne M. Robicsek since 1993, Law Clerk to Judge Rufus Reynolds, US Bankruptcy Judge for Middle District of NC; Burns Price & Arneke, PA, David Badger and Associates, PA.

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