One extremely important thing to stress when it comes to bankruptcy is the fact it requires total transparency in regard to your financial situation. When you are faced with difficult financial troubles, bankruptcy is meant to help you get a fresh financial start.
In order for the process to work effectively and in its entirety, everything needs to be upfront and you need to be honest about your assets. Hiding assets may result in the wrong process being used, as in you might end up filing under Chapter 13 when Chapter 7 would have been your best route. Furthermore, if you are looking to file bankruptcy and hide your assets, you may end up facing serious consequences for years to come when discovered.
These consequences could be contempt of court, being deemed ineligible to ever file for bankruptcy, or simply be that your application is rejected. You could end up facing criminal charges, which means jail time and fines.
How Hiding Assets Impacts Bankruptcy
There are many ways people may intentionally or unintentionally hide an asset. In one instance, transferring assets to another person so you can retrieve them after your bankruptcy is complete is a way to hide assets. Another would be selling off a property and then reclaiming it later.
Utilizing false statements, concealing income or lying to authorities about your revenue and income is not the way to go. Since determining the correct chapter for you to file under is based on the income, revenue, and other assets you possess, hiding any of it could mean the wrong procedure is being used. Even worse, you might not even have to file for bankruptcy at all.
In addition, if you lie in order to file bankruptcy under a certain chapter, that may take away from others that are actually seeking much-needed debt relief that filing for bankruptcy can provide. Of course, sometimes hidden assets come as a result of mistakes on applications. You may have incorrectly filled out a form, leading an authority to incorrectly assess your situation. While this may prove to be a mistake, it could end up being costly when your application is denied or disqualified.
It is also important to note that there are those who work for bankruptcy processes who are able to research and find any hidden assets you might have. If discovered, this can lead to your disqualification and penalties previously mentioned.
NJ Bankruptcy Attorney’s “Do’s and Don’ts”
In an effort to ensure that your application is transparent and complete, you should contact the Law Office of Joel R. Spivack. Backed by years of experience, Mr. Spivack has the knowledge and strategies necessary to assist with your debt relief.
With a comprehensive list of “do’s and don’ts” when it comes to filing for bankruptcy, there is no better option to turn to in New Jersey. Mr. Spivack will answer all your questions and put his experience to work in helping you. All you have to do is set up a free, in-person consultation by picking up the phone and contacting the firm today at 856-488-1200.
The articles on this blog are for informative purposes only and are no substitute for legal advice or an attorney-client relationship. If you are seeking legal advice, please contact our law firm directly.