Penalties for Hiding Assets

Some people think that in order to come out of bankruptcy in good shape, they must hide assets or not list creditors on their bankruptcy papers. This is a bad idea for a number of reasons.

The biggest reason that hiding assets or not disclosing creditors is a bad idea is that the bankruptcy case is likely to be dismissed with prejudice by the bankruptcy judge. If the case is dismissed with prejudice, it can’t be retried and the debtor is now left with only the option of paying back all of his or her creditors in full. In addition, the phone calls, mailings, and other forms of contact initiated by the creditors will not stop either.

Another huge problem with filing bankruptcy papers that do not have a complete list of assets is the threat of perjury. Bankruptcy papers are signed officially and that signing constitutes an individual swearing that all of the information contained is true and accurate to the best of his or her knowledge. If the debtor knows that something has been left off of the papers, that person has perjured him or herself. Perjury is a serious crime that the courts do not take lightly.

The third problem with filing incomplete bankruptcy papers is that the person leaves him or herself open to prosecution for fraud. This is another serious crime that the courts and prosecutors of the United States do not take lightly.

Overall, filing incomplete bankruptcy papers is not a good idea. While the court may excuse a few, minor, honest errors, the same cannot be said for willfully leaving creditors and assets off of the paperwork.

Contact a Boston Bankruptcy Lawyer

If you have your back against the wall and do not see a way out of your personal financial mess, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346 to discuss your situation and to determine the best form of bankruptcy for you.