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Bankruptcy Overview – Getting Legal Assistance

[embed]https://youtu.be/jSFpOYvxBZc[/embed] Legal Assistance Individuals have a right to represent themselves in bankruptcy court. However, bankruptcy is a complex area and involves many considerations including whether to file, what chapter to file under, and what exemptions to claim. It is important to understand all of the protections of the bankruptcy code in order to make full…
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Bankruptcy Basics Series Part 8: The Discharge

[embed]https://youtu.be/1Ff6mN-Vfyw[/embed] The Discharge How Does the Discharge Help Me, and How Did I Get it? 00:11 Again, debtors are usually able to discharge most or all of their debts. To get a discharge you must fulfill certain duties, including the completion of a financial management course after the case is filed. When you take this…
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Bankruptcy Basics Series Part 7: Courts Hearings

[embed]https://youtu.be/xfbHo6DPl2k[/embed] Courts Hearings Bankruptcy Court 00:12      Depending on the chapter of your bankruptcy case and its complexity, you may also be required to appear at hearings before the bankruptcy judge in a chapter 13 case. You may only have to appear at the hearing for the court to confirm, meaning approve, the chapter…
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Bankruptcy Basics Series Part 6: Bankruptcy Crime

Bankruptcy Crimes

Inaccuracies Can Be a Bankruptcy Crime

Bankruptcy crime: A debtor must be very accurate in his or her dealings with the court. Including filling out the statement of financial affairs and schedules accurately. These papers and a debtor’s testimony at the 341 Meeting are sworn to under penalty of perjury there can be severe consequences for violating this duty.

Let’s hear from a bankruptcy judge, Judge Paul M. Glenn

“Bankruptcy is not a step to be taken lightly or casually it’s a serious event. It has some real benefits. It will help people save their homes, it will help people relieve themselves from overwhelming debt, but along with those benefits there are some serious responsibilities that go along.

Make sure you file the paperwork

There’s a petition and financial statements that have to be filed when a person files their bankruptcy case. And these are signed under oath, these are sworn documents. There signed under oath and under penalty of perjury.

Watch out for fraudulent acts

Sometimes people will transfer vehicles or personal property or things to their relatives or their parents or their kin to hold for them for a period of time while they go through bankruptcy. That is a clearly a non-disclosure of assets and is bankruptcy fraud. So, any transfers that have been made within the last period of time have to be disclosed on the schedules.

In addition…

to the oath that goes along with the signature all the papers are signed under one of the rules of the bankruptcy courts and that is the signature’s a certification that to the best of the person’s knowledge and information and belief the representation are accurate, the facts are accurate.

The consequences of not being candid

And not being truthful on the schedules there is a criminal law that says that if anyone files a petition or files a document it makes a false or fraudulent representation and they are subject to criminal prosecution which provides for fines or imprisonment even up to 5 years or both of those.

It’s a serious crime to not be truthful

So, it’s a serious crime if there are material misstatements that could be prosecuted. The consequences of fudging are just too severe to risk. You risk the discharge, you risk committing a crime and the chances are likely that you’ll get caught because the trustees who review these schedules in the trustees meeting review thousands and they see thousands of people.

Be Honest

They know the questions to ask. The questions that they ask in the meeting have to be responded to under oath. And then the creditors come to the meeting and creditors are allowed to have their input as well. The likelihood that non disclosures will be found and if they are then there are serious consequences to that. Sloppiness and gross negligence are among those criteria that will lead to the conclusion that the admission is intentional. Take your time, get it right and be honest.”