As uncomfortable and embarrassing as it might be, everyone filing for bankruptcy must disclose all of their financial information to the court. However, disclosing information doesn’t mean you can’t protect your most important assets.
Here’s what you need to know about protecting your assets when you file for bankruptcy.
Anyone concerned about “losing everything” when they file for bankruptcy need not worry. The bankruptcy process includes a legal and effective way to protect assets when you file.
People filing for bankruptcy can use exemptions to prevent the court from confiscating many of their assets. There are exemptions available at both the state and federal levels. Your bankruptcy attorney will review your financial situation and help you determine what assets are eligible for exemption.
Trying to misuse the system instead of abiding by the opportunities available for exempting assets is guaranteed to backfire. Even honest mistakes cause problems. However, intentionally failing to disclose assets might result in criminal charges.
The court considers the following dishonest and possibly fraudulent:
What is at risk when you hide assets in bankruptcy court and from the trustee?
One of the biggest mistakes people make when filing for bankruptcy is assuming the trustee won’t look that far into their case. This isn’t true.
The trustee’s job is to recover as much as possible for your creditors. They’ll look into every possible avenue and dig into your financial information as much as they can.
This includes a review of:
Occasionally, someone legitimately forgets to list an asset. This is one of the reasons it’s so important to work with an attorney. They help you review your information and ensure it is complete and accurate.
If you do forget an asset, you’ll need to file paperwork with the court to disclose the asset as soon as possible. As long as you were intentionally hiding assets in bankruptcy, it’s unlikely to result in revocation or denial of a discharge.
If you have questions about debt discharge or you’re looking for an experienced bankruptcy professional to help you complete your paperwork accurately and completely, we can help. There are legal ways to protect assets, but the process tends to be complex when you are unfamiliar with the process. For more information, contact R. Flay Cabiness, II, P.C. at (912) 417-5041 (Brunswick, GA); (912) 809-2141 (Hazlehurst, GA) or; (912) 324-3176 (Jesup, GA) to schedule a consultation.
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