Tuesday, October 27th, 2009
We meet clients who have secrets. But bankruptcy is no place for secrets. Bankruptcy requires full disclosure. Clients who don’t disclose all of their assets, all of their income or even all of their debts could lose their discharge in bankrutpcy. Why?
Everything that you say in your bankruptcy petition is supported by your solemn oath, under penalty of perjury. So if you leave out something important from your bankruptcy petition, and it is clear that you knew better, there’s a strong likelihood that you can lose your discharge, just for making a false oath.
You also have to keep your paperwork intact. How much you need depends on how significant your business and debt is at the time you file your case. However, the more sophisticated you are, the more paperwork you must have. Failure to provide necessary papers to a trustee could result in loss of a discharge too.
You have to answer questions honestly too.
If you fail to do so, not only might you lose your discharge, you might also be committing a bankrutpcy crime.
Count on us at Lakelaw to help you file your bankruptcy papers correctly. Call us today at 1 866 LAKELAW (5253529). Lakelaw represents people in bankruptcy cases in Illinois and Wisconsin.
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Written by David Leibowitz
Wednesday, June 3rd, 2009
Banks may care about what you say on the financial statement in your loan application. When you apply for a loan, the bank asked you about your assets and liabilities. If you told the bank you have less than you actually own, this may not be a problem. Some financial statements create problems. Here are some common problems in financial statements:
- You claim to be the owner of something you really don’t own
- You claim to own something outright when you really own it with your spouse
- You claim to own something in joint tenancy when you really own it as tenants in common
- You overstate the value of your personal property
- You overstate how much you have been earning.
If the bank or another lender justifiably relies on something you put in a financial statement, you could be in trouble if you knew your statements were material and not true when you made them. A bank might seek to bar dischargeability of your debt even if you do file a bankruptcy case. Sometimes a bank might try to bar your discharge altogether. A bank may threaten to prosecute you for bank fraud.
Banks today are under severe stresss. If you plan to file a bankruptcy case, you should consider how a bank might react to your filing. Tell your bankruptcy lawyer everything you told your bank when you took out your loan. It will help your lawyer advise you and help you to be ready for any claim a bank or other creditor might make against you during the course of your bankruptcy case.
For more information, check Bankruptcy Code section 523(a).
Lakelaw defends people against complaints under Bankrutpcy Code section 523(a) to determine dischargeability of debt and against complaints under Bankruptcy Code section 727 to bar discharge.
For more information about discharge in bankruptcy, click here
Call Lakelaw now at 1 866 LAKELAW (1 866 525-5359).
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Written by David Leibowitz
