Many people who enter the bankruptcy process immediately begin to worry about the fate of their assets. While it is true that some of your property could be used to satisfy debt obligations, bankruptcy laws are designed in a way to offer you more protection than you may think. Much of your property will be protected under bankruptcy exemption laws, and what isn’t may not even qualify for liquidation. The bottom line is that your assets may be at risk, but you face bigger trouble if you attempt to hide them from the court.
Honesty Is The Best Policy
When you file for bankruptcy you will be expected to submit an exhaustive list of your assets to the court. Don’t be nervous, you aren’t putting your property up for the firing squad. This detailed list is used by the court to help develop an overall sense of your financial standing. The best way to fail your case is to lie about, hide or misconstrue the value of your assets. Not only are you likely to have your case dismissed without a discharge, you could face a permanent ban on filing again in the future or even face criminal charges of bankruptcy fraud.
Since the nature of your assets is valuable to the court in your case, it is advised that you not make any attempts to give away, transfer ownership of or sell your assets prior to, or during, your bankruptcy case. If you do find it necessary to sell an asset, be sure to report the income gained from the sale in your petition. Also, it is important to always keep your New Port Richey bankruptcy attorney up to date with any changes to your financial standing, debts, income or assets during your case. Staying open and honest can be the difference between a successful outcome and a failed attempt.