Honesty In Bankruptcy

The single biggest piece of advice a Dallas bankruptcy lawyer will give his or her clients when filing for bankruptcy is this: be honest. Just as it is in any arena of life, honesty is an integral part of the bankruptcy process. In order to avoid additional problems, be clear, precise, and open with all information the court requests of you. Because you are signing bankruptcy papers under penalty of perjury, your honesty is not to be taken lightly. Here are a few ways you can be sure to avoid problems when filing for bankruptcy:

List Every Debt and Creditor

By listing every debt and creditor, you are actually helping yourself. Bankruptcy cannot help you discharge debts without knowing they exist. When filing for bankruptcy,  list creditors you don’t think you owe payments to (by listing it as disputed). It is best to be open about everything, because the court will not punish you for honesty.

List Future Cash Flows

When filing for bankruptcy, it is also required to list money you may have coming in in the near future. This includes things like judgments or lawsuits you have filed, pensions, annuities, retirement funds, trust funds, stock options, tax refunds, and inheritances from a recently deceased relative. Your Dallas bankruptcy lawyer will advise you on how you can apply for exemptions on some of these things.

Don’t Hide Assets

It’s pretty simple; don’t hide any assets you have. Lying about your assets when filing for bankruptcy is considered fraud. If convicted of fraud, your case will be dismissed and you could be sentenced to jail time. Honesty is the best policy.