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Follow on Google News | Full Disclosure on Bankruptcy Petitions a MustLet's entertain an important reminder about the need for full and complete disclosure of assets and debts in bankruptcy petitions.
By: Bankruptcy Chapter 7 The last paragraph of Scott's post merits repeating: The lesson to debtors is, obviously, disclose all of your assets and answer all questions truthfully (truth + fully). You cannot over-disclose to your lawyer or on the schedules. For debtors' counsel, explain the criminal and civil (bankruptcy) All of us who represent stressed out and anxious debtors have heard a request that "let's just keep this between the two of us" and a confession about some hidden asset or loan repayment (in cash) to a relative. My response, as would be the response of most of my colleagues in the consumer bankruptcy bar, is to the effect that (1) I am an officer of the Court and I will not participate in a scheme to mislead the bankruptcy court and (2) I am not going to put my livelihood in jeopardy for any client, ever. In the case discussed in Scott's blog entry, the omitted assets would not have created a problem for the debtor, but the judge or trustee in that case sent the file to the U.S. Attorney for criminal prosecution for Bankruptcy Fraud. Because the debtor intended harm, he committed a crime – and ended up serving time in federal prison. So, if you are considering bankruptcy, keep in mind this requirement of total and complete disclosure of all information, good, bad or indifferent. For more information visit http://www.bankrupcy- # # # Bankruptcy Chapter 7 distributes helpful information through a network of websites, newsletters, blogs, and press releases. End
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