How to Prove That Asset Declarations Are Truthful in Bankruptcy

When someone files for bankruptcy, the court needs to know what kind of accounts, assets, and other holdings they might have. This information is important as courts need to know if someone is eligible for bankruptcy based on their assets or if they can be liquidated during bankruptcy. When you declare your assets, you should also be prepared to prove they are accurate and truthful.

Proving that your asset declarations in a bankruptcy case are truthful might be as simple as having official documentation or paperwork to back them up. Bank statements, receipts from transactions, or even documentation of appraisals of property might be necessary. If the court does not believe your declarations are truthful, speak to an attorney. If there is additional information you can present to the court, your lawyer should be able to help you do it. This is crucial in your case, as false or misleading declarations might land you in serious legal trouble.

Get a confidential assessment of your case for no charge by calling our bankruptcy lawyers at Young, Marr, Mallis & Associates at (215) 701-6519.

What Are Asset Declarations in Bankruptcy and Why They Must be Truthful

When a person files for bankruptcy, they must submit information about their bank accounts, assets, property, holdings, and other financial interests. For some, this might be a rather short list. For others with more complicated finances, they might be longer and more difficult to compile. It is crucial that your asset declarations are complete and accurate, as the bankruptcy court needs to know the full extent of your financial situation, including assets and debts. The court will not be pleased if your declarations are less than accurate.

Asset declarations are often included in typical bankruptcy forms. When our bankruptcy lawyers file your bankruptcy petition for you, forms where you can include asset declarations are likely already included. However, suppose you have a long and somewhat complicated list of assets to declare. In that case, we might need to add extra forms or attach additional information about your assets to your bankruptcy petition.

If the court suspects a petitioner’s asset declarations are untrue, the petitioner might be accused of fraud. It is not uncommon for some petitioners to try to hide assets from the court. Their plan is usually to hide these assets so that when everything is liquidated, they have other secret assets to fall back on. Petitioners who do this often believe they are not doing anything wrong and are only protecting themselves. The truth is, this is highly illegal.

How to Prove Your Asset Declarations Are Tue and Correct in a Bankruptcy Case

Now that you know how important it is to ensure your asset declarations are truthful and accurate, the next step is to figure out how to ensure their accuracy. Again, people with rather straightforward finances will likely have little trouble assembling their asset declarations. Maybe you own a home, a car, and a few banking or investment accounts. If your assets are more complicated, speak to an attorney about how to make sure all necessary information is included in your declarations.

Records and documentation are key to making sure asset declarations are truthful. Your bank is one of the first places we should go for such documentation. Bank records about all accounts you have with that bank should be collected and reviewed. If you have accounts or holdings with multiple banks, we need records of your accounts and holdings from each bank. The more recent these records are, the more accurate your declarations will be.

We should also consider assets you might have acquired through transactions. For example, maybe you recently purchased a home or sold another property. We should get records and receipts of those transactions. These records should contain details about the transaction’s value and your gains or losses. Even relatively small transactions should be included.

Even ordinary account statements may be helpful. People often receive bank statements monthly. We can obtain copies of your most recent statements to include in your asset declarations. This might be helpful for things like checking and savings accounts. Even if these accounts are small or empty, we should have the statements to prove it.

If you own valuable personal belongings (e.g., jewelry, art, collectibles), itemized lists of those belongings might be necessary. We should also consider having these items appraised so that their value is accurately reflected in your asset declarations.

What to Do if the Bankruptcy Court Suspects Your Asset Declarations Are False

If the court believes that your asset declarations are not truthful, do not panic. While courts do not take fraud lightly, and the potential penalties might be serious, not all instances of false declarations are intentional. Tell your attorney if your false declarations were due to a clerical error or mistakes in record keeping. Your lawyer can explain the situation to the court and hopefully buy you some extra time to get your records in order and make sure everything is accurate.

Another possibility is that you left certain assets out of your declarations because you believed they were exempt. Bankruptcy exemptions are not unusual, and petitioners exclude things all the time. However, you must inform the court about what exemptions you plan on claiming. You cannot simply leave those assets out.

Penalties for Submitting False Asset Declarations in a Bankruptcy Case

You might face some unpleasant consequences if you submit less than truthful asset declarations during bankruptcy proceedings. First, the court may reconsider your bankruptcy petition. In some cases, assets that were not declared make the petitioner ineligible for bankruptcy, depending on how they file. If this is the case, the court will deny your petition.

Perhaps the problem with your asset declarations did not come to light until after the court discharged your debts. In such a case, the court may revoke the discharge, and you will again be liable for those debts.

You might face criminal charges and penalties if court officials believe you intentionally misled them by submitting false asset declarations. You could be charged with crimes related to fraud and perjury, and your bankruptcy petition will likely be dismissed.

Contact Our Bankruptcy Attorneys for Help with Your Case

Get a confidential assessment of your case for no charge by calling our Philadelphia bankruptcy lawyers at Young, Marr, Mallis & Associates at (215) 701-6519.