Why You Should Never Hide Assets When Filing for Bankruptcy

Why You Should Never Hide Assets When Filing for Bankruptcy

January 31, 2020

Hiding assets during bankruptcy in Montgomery County, TX is never a good idea. Not only are the courts sure to discover the assets over the course of examining your case, but it shows the judges that you’re approaching the consequences of your decisions in bad faith. You might be panicking at the thought of losing everything you own, but that’s why it’s important that you consult a bankruptcy attorney as soon as possible. You might be surprised at how much damage can be mitigated if you’re up front and honest about your income, expenses and assets.

What does it mean to hide assets?

Even if you think you’re just protecting assets, bankruptcy attorneys and judges have seen it all, and don’t look kindly upon subterfuge—even if you’re trying to save your family’s precious belongings. That means you can’t lie about whether or how you own assets. You also can’t transfer or give a family member your assets to hold onto while you undergo bankruptcy proceedings, and you can’t make it look like your assets have no value, whether through fake liens, mortgages or other means. Not only will the court see right through you, but it will destroy your credibility.

What will happen if I hide assets?

The consequences of hiding assets in bankruptcy in Montgomery County, TX are severe:

  • You could face criminal charges: If nothing else, you want to stay out of jail, right? When you file for bankruptcy, you’re swearing to the court that you’ve listed all of your assets and debts under penalty of perjury. Perjury is a crime, and you don’t want to play with your freedom or criminal record.
  • You won’t be able to discharge your debt: The entire idea of bankruptcy is to discharge your debt, which, if you hide assets, will not be allowed. You’ll be subject to creditors seizing assets and selling them to pay off your debts, plus whatever is left over—leaving you in a worse position than you were in before.
  • Your discharge could be revoked: If the court finds that you hid assets after your debts were discharged, they could revoke the discharge—and you’ll still be on the hook for paying them back.
  • You won’t be able to discharge these debts in subsequent bankruptcy cases: If you file another bankruptcy case, after your case was denied or revoked for hiding assets, you won’t be able to claim those assets as exempt.

It might be frightening, but when it comes to bankruptcy cases, honesty is always the best policy. Hiding assets during bankruptcy in Montgomery County, TX is ultimately just never a good idea.

Hire a bankruptcy attorney today

If you’re ready to file for bankruptcy, don’t do it alone. James R. Jones, Attorney at Law has been handling state and federal bankruptcy cases since 1993. We can help you form a bankruptcy strategy that will protect as many of your assets as possible while approaching the courts in good faith, so you get the best results for your case. Reach out today to learn more.

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