Honesty is the best policy in life, especially if you are filing for bankruptcy, say lawyers of Los Angeles based bankruptcy law firm Recovery Law Group. When you file your bankruptcy papers, it is important that you mention all your assets, income and debts and not hide things. This is because sooner or later a disclosure might hamper your chances of getting debts discharged through bankruptcy. In fact, you might even end up getting your bankruptcy discharged or worse, get jail time. since you are required to sign bankruptcy documents, if anything mentioned on them is not true, you might be held guilty of perjury. Additionally, if the bankruptcy documents are incomplete or something in them raises the trustee’s suspicion, a thorough analysis of the bankruptcy schedule is done then.
One of the most common reasons for not disclosing everything is because people want to hide their assets. debtors think that hiding assets might help to protect them. Unfortunately, it is not true. When you file for bankruptcy, you need to disclose all assets while filling your bankruptcy schedule, even if it seems insignificant.
Just like listing your assets is important, so is listing all your creditors, including those friends or relatives from whom you have borrowed money. sometimes, people don’t want some of their creditors to be aware of their bankruptcy filings and thus omit their names from the list of creditors. this is another potential mistake that people need to avoid while filing for bankruptcy. you should list all your creditors as the bankruptcy trustee wants all creditors to get their part of your estate. Thus, if you do not want more scrutiny of your bankruptcy schedule, you should list all your debts, creditors as well as assets and income.
Considering the importance of transparency and honesty in the bankruptcy system, it is vital that you disclose everything when you file for bankruptcy. however, an honest mistake is something that is understood even by the bankruptcy trustee. Thus, if you end up omitting something in your schedule you can always correct it by filing an amendment as soon as you become aware of the mistake. For further assistance during bankruptcy proceedings, you can consult with experienced bankruptcy lawyers by calling 888-297-6023.