Bankruptcy Consequences: Hiding Assets

Burr Law Office is dedicated to helping our Wisconsin clients resolve their cases quickly, affordably, and effectively. If you plan to file for Chapter 7 or Chapter 13, here is why attorney Michael Burr will advise you that you are legally obligated to disclose all your assets.

Unlisted Assets

Whether you are filing for Chapter 7 or Chapter 13, you are legally required to list all your assets, debts, and any pending litigation or judgments. Some debtors falsely believe that if they file for Chapter 7 bankruptcy, they can still hold onto their property. Though many borrowers are able to avoid foreclosure, the first step of both a Chapter 7 liquidation and a Chapter 13 reorganization is the court appointment of a trustee to oversee the repayment or discharge of debts.

Appointed Trustee

If you have failed to disclose any assets or property to your lawyer and they are not listed in your filing, there is a very good chance that your trustee will discover these hidden assets. The trustee has access to your tax returns, financial records, insurance documents, and credit applications. Furthermore, he or she can speak to your friends and family, who may unwittingly disclose your hidden bank account, vehicle, or antiques.

Serious Bankruptcy Consequences

If you are caught hiding assets when you file for bankruptcy, you may lose your property and your application may be denied. Furthermore, if your claim is denied for fraud, you will not be able to discharge these debts in any subsequent filing. Finally, you could face criminal charges and even prison time for making a false statement.

If you live in the Milwaukee area and are considering filing, call Burr Law Office at (877) 891-1638 to discuss your case with a bankruptcy attorney. Only an experienced lawyer can guide you through this complicated legal process to make sure that you properly disclose all of your assets. Call today to avoid serious bankruptcy consequences.

You may also find this article helpful: “Bankruptcy Consequences: Skipping Payments”