It Doesn’t Pay To Lie to the Bankruptcy Court

John Longo FDCPA Lawyer RI

Perjury Lands Bankruptcy Filer In Jail

Never, never lie to the bankruptcy court or your bankruptcy lawyer.

A woman in Mississippi did and now she is going to jail for three years.

The woman filed bankruptcy but did not tell the court she had a personal injury lawsuit pending.  Her lawsuit settled shortly before her bankruptcy case was over so she hid the $250,000 she received.  The day after her bankruptcy case ended, she retrieved her money and started spending it.  The bankruptcy court found out and she was convicted of bankruptcy fraud.

Tell Your Bankruptcy Lawyer Everything

Here are 5 things clients sometimes fail to tell their bankruptcy attorney because they are afraid it will mess up their bankruptcy case:

1. They have repaid a loan to family member in the past year.

2. They have another lawyer handling a claim for them – usually a car accident case.

3. Their name is on the deed for their parents’ house or parents’ bank account.

4. They lost money gambling in the past year.

5. They have owned real estate other than their home within the past 5 years.

Tell your lawyer the truth about EVERYTHING.  There’s a good chance what you think is a problem is not that difficult to deal with.  But if you lie, or hide things, that becomes a huge problem.  Then you have to worry about losing your liberty, not just losing some money.

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