Filing Bankruptcy? Disclose Everything, Hide Nothing

Bankruptcy is a very serious matter, and can have lasting consequences for your financial livelihood. As a result, it is highly important that you take the utmost care to ensure your bankruptcy process proceeds as smoothly as possible. This means, among other things, that you do not keep any information from the bankruptcy court or your bankruptcy attorney.

Full disclosure is required by bankruptcy law because the sensitive and complicated aspects of bankruptcy require total information. After all, the court is basing its decision off of the information you give it regarding your financial history, assets, and income; they cannot make a complete and fair decision without it. That is why you are required to fully disclose everything pertaining to your finances (even if you think it may not apply, like household goods).

Those who do not choose this path and instead elect to withhold information and hide assets from the court face severe consequences. For starters, the bankruptcy will be taken out of your hands entirely and the court will likely deny the discharge of your debts. Additionally, any property (or rights to property) that is not disclosed can be lost to creditors or the bankruptcy trustee. This happens with savings accounts, bank accounts, pensions, insurance assets, tax income refunds, and anything with any cash value.

Co-signed debt must also be included; if it is not disclosed, the property can be lost and your co-signer will suffer. Additionally, you must list every single creditor you have, no matter what; failure to do so could result in a failure to discharge the debt forever.

In short, not fully disclosing your information to the bankruptcy court - including assets, liabilities, creditors, possessions, property, etc. - is disastrous to someone looking for debt relief. Any denied debt discharges related to a failure to disclose can never be discharged during bankruptcy - ever. Non-exempt property can also be seized and sold, which could include your home, your car, and your household goods that normally would be protected.

Disclose everything and hide nothing and avoid the consequences.