Money problems and declaring bankruptcy:

If you are having money problems, one option that you have for repaying your debts is to declare bankruptcy. Bankruptcy is not always the best option; in fact, it should only be used as a last resort. It is, however, a good option for some people. If you do declare bankruptcy, it is very important for you to tell the truth completely.

There is no need to rush the system. Take all the time you need to make sure that your information is fully complete and accurate. If you don’t tell the truth, it will come back to hurt you later in life, no matter how careful you may be.

Declaring bankruptcy to avoid debt:

Of course, mistakes happen. If you forget to list something when declaring bankruptcy or otherwise misrepresent yourself and it was an honest mistake, the court will probably ask you to make the correction and warn you to be more careful.

However, if you make too many mistakes, it will be evident to the court that you were careless when filling your paperwork. If you are careless, the court could dismiss your case entirely, even if you weren’t attempting to defraud your lenders by declaring bankruptcy when you didn’t have to just to avoid debt.

Purpose of bankruptcy:

Remember that bankruptcy doesn’t allow you to play favorites. If you owe money to a relative’s business or happen to be friends with the owner, you still have to list the business when you declare bankruptcy.

The purpose of bankruptcy is to make sure that all of your lenders get an equal share of the money and assets you do have. The court will discover that you have debts with these people, and your case may be dismissed or you may come under full review. In that case, other things you have left out when declaring will also come to light.

Bankruptcy and physical possession:

You must also remember to list any money that you do not yet have in your physical possession but that will be yours in the near future.

For example, if a relative has recently died and left your money or property, but the will has not been executed yet, you will still have to list this asset.

Conclusion:

Trying to hide assets is also illegal. If you own property, like land or jewelry, don’t try to put it in relatives’ names or otherwise quickly dispose of it. This offense could wind you up in jail and you’ll have huge fines to pay on top of the debt you already owe! Instead, simply be honest from the beginning.

If you don’t know what your specific obligations are, talk to a lawyer or financial professional.

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