Can I go to Jail for Lying about Assets During Bankruptcy

Lying about your assets during bankruptcy proceedings is a serious matter. Let me explain the potential consequences:

1. No Discharge of Debts: When you file for bankruptcy, you are required to fully disclose all your assets, income, and debts. If you intentionally hide assets, the bankruptcy court may deny you a discharge. A discharge is the order that wipes out qualifying debt. Without a discharge, you’ll continue to owe all the debt you were trying to eliminate through bankruptcy.

2. Property Turnover: Even if your case isn’t dismissed, any property you’re not allowed to keep (exempt) under the law will still have to be turned over to the trustee assigned to your case. The trustee will sell these assets to pay your creditors.

3. Revocation of Discharge: If the trustee discovers hidden assets, they can ask the court to revoke your discharge. This can happen before the case closes or even up to one year after the discharge date.

4. Criminal Penalties: Bankruptcy fraud is a federal offense. You sign your bankruptcy schedules under penalty of perjury, affirming their accuracy. If you’re found guilty of hiding assets, you could face criminal penalties, including fines of up to $250,000 and imprisonment for up to twenty years.

How Do People Hide Assets? People attempt to hide assets in various ways:

• Lying about ownership

• Transferring assets into someone else’s name

• Creating fake liens or mortgages to devalue assets

• Not disclosing asset transfers that occurred before filing for bankruptcy

How Will the Trustee Find Hidden Assets? Bankruptcy trustees are skilled at detecting signs of hidden assets. They review debts, examine financial records, and look for inconsistencies. If you’re caught hiding assets, the consequences can be severe. Remember, honesty and transparency are crucial during bankruptcy proceedings