Consequences of Hiding Assets in Bankruptcy
If you feel that your debts are sinking you deeper and deeper and that it's becoming increasingly difficult to pay your bills, then you may need to start looking for alternatives to regain control of your finances. A legal option that can help you get rid of your debts and get a fresh financial start, as incredible as it may seem, is bankruptcy.
Contrary to popular belief, bankruptcy won't be the thing that destroys your financial future. On the contrary, this legal process can help you get the financial re-start you need to rebuild your finances from the ground up.
In short, the bankruptcy process will eliminate most of your unsecured debt, such as medical bills, personal loans, credit, etc.; to help you regain control of your financial affairs.
However, you should keep in mind that bankruptcy is a transparent procedure. You will have to disclose your financial status in detail on the bankruptcy forms, in exchange for your debts being discharged. That includes all your income sources and all the assets you own.
Therefore, failure to fully disclose your financial situation, or hiding certain assets from the process, may be considered bankruptcy fraud. This is a serious accusation, which can have terrible repercussions in your life, such as having your bankruptcy process blocked, or even facing criminal charges.
In light of this reality, you should work with a Los Angeles bankruptcy attorney before proceeding with your filing. Furthermore, you must make sure that you work with a legal professional that you can trust, and KT Bankruptcy Lawyer can be an excellent option. This law firm focuses on helping their clients get a fresh financial start through bankruptcy, and they have a remarkable track record of success that shows their commitment and dedication. If you would like to learn more about KT Bankruptcy Lawyer, visit their website and contact them for a free consultation.
How do people hide assets?
Some people try to hide their assets in many ways. What they don't know is that trustees know every single method. Here are some examples:
- Lying directly about owning certain assets.
- Transferring assets to another person just before proceeding with the declaration without justification.
- Altering documents to make certain assets appear valueless.
- Making mistakes during the bankruptcy filing due to their lack of knowledge of the process.
What are the consequences?
The consequences of hiding assets during the bankruptcy process could be very serious. If the trustee finds out that you are committing bankruptcy fraud, this is what can happen:
- Your debts will NOT be discharged: If the bankruptcy court determines that you have been hiding assets, you will lose the opportunity to have your debts discharged.
- Your discharge may be revoked: On the other hand, if you are found to have been hiding assets after your debts were discharged, the trustee may ask the court to reverse your discharge completely.
- Your debts won't be discharged, not even in another bankruptcy: If your discharge was revoked or denied, all debts listed in your bankruptcy will not be dischargeable in any subsequent bankruptcy proceeding.
Criminal Charges: Bankruptcy fraud can have significant criminal consequences. You could face a fine of up to $250,000 or up to twenty years in prison.
What if is an honest mistake?
If you fail to disclose an asset due to a mistake, you may have a chance to redeem yourself before it's too late. After you realize the error, make sure you send in the papers required by the court to disclose the asset.
In these situations, the court may not immediately revoke your filing because you didn't act with the intent to commit fraud, harm, or hinder the process. However, don't be too confident. If you don't rectify the error in time, you will suffer the consequences.
At the end of the day, the wisest course of action is not to take unnecessary risks and to work with an attorney from the very beginning. If you want to talk with a Los Angeles bankruptcy attorney you can trust, contact KT Bankruptcy lawyer for a free consultation, you won't regret it.
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