Fast, Effective Debt Relief

Fraudulent activities that may sink your bankruptcy filing

On Behalf of | May 22, 2024 | Bankruptcy

Are you drowning in overwhelming personal or business debt? If so, bankruptcy can be the lifeline you’re looking for. However, before exploring this debt relief option, you should know that if you don’t uphold the integrity of the process, your bankruptcy filing may sink.

Committing bankruptcy fraud can take away the only viable chance you have to better manage your debt. By familiarizing yourself and complying with the rules and requirements, you can boost your odds of a successful undertaking.

Hiding assets

If you’re battling insurmountable debt, it can be tempting to hide some of the assets you own. Unsurprisingly, many people conceal some of their assets, hoping they’ll be exempt from liquidation. However, you should know that this form of bankruptcy fraud might jeopardize your bankruptcy filing.

Transparency is among the surefire ways of demonstrating your commitment to securing a fresh financial start. Therefore, you shouldn’t think twice about listing all the assets you own when you’re filing for this debt management plan. Remember that even transferring ownership of some assets to colleagues and family members shortly before filing for this debt management plan can be interpreted as concealment of assets.

Wiping out financial records

You may also be tempted to wipe out or conceal some financial records to give a different financial picture than what is the reality. This can be interpreted as interfering with the process because inaccurate financial records can make it challenging for the court to gauge your financial standing. You’re better off maintaining a complete and accurate set of financial records. Detailed documentation can smooth out the filing process and rule out any suspicions of wrongdoing.

Are you looking to turn a new financial leaf with the help of a reliable debt repayment plan or a Chapter 7 filing? If so, you can benefit from seeking personalized legal guidance to help ensure you don’t sink your application with fraudulent activities.