To declare bankruptcy successfully, one must comply with all the filing rules. That includes providing the correct information about their assets and income. Furnishing the court with incorrect data can make you face serious consequences. Failing to disclose some of your assets to avoid losing them could get you into deep trouble. So seek guidance from a bankruptcy attorney regarding asset disclosure. By doing this, you will avoid the following repercussions.
Getting a Denial of Your Application
Usually, the bankruptcy trustee only approves applications that meet the filing requirements. Therefore, you could get a denial if you fail to disclose all assets in your name. Besides that, you can lose these assets if a creditor obtains an order to recover their money before you appeal the application denial. But you can avoid this scenario by working with a bankruptcy attorney. They will ensure that you disclose all your assets as required by law. The court will approve your application if you provide the correct information.
Inability to Discharge Debts in the Future
A determination that you have provided the wrong information might restrict you from discharging debts in the future. The court will bar every debt in your current bankruptcy case from discharge even if you successfully appeal a denial. That means you cannot include the debts in your future applications. Again, working with a bankruptcy attorney helps you avoid such a costly mistake. They will help you navigate the process to ensure your application sails through successfully. Then, you can get a clearance of all the dischargeable debts.
Facing Criminal Charges
One of the most severe punishments for lying about your assets is facing criminal charges. After realizing that you've issued the wrong information, the bankruptcy trustee can file charges against you in court. A conviction for this offense can make you spend years behind bars or pay a hefty fine. It could worsen your bankruptcy since creditors may take over your assets to recover their money. That explains the importance of providing accurate information during bankruptcy applications. Your lawyer will examine your application before filing it to ensure that all the information is correct.
The key reason for hiring a bankruptcy lawyer is to get guidance when filing an application. They will ensure that you disclose all assets. Also, they will guide you in filling out the paperwork so that you won't make costly mistakes. As such, working with a lawyer increases the chances of approval.
For more information, contact a local firm like Knollmeyer Law Office, PA.
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