At Levitt & Slafkes, P.C. we stress to our clients the importance of being honest when listing their assets in a Chapter 7 Bankruptcy. Bankruptcy is truly meant to help the honest debtor. It is a big mistake to intentionally hide assets when you file bankruptcy.
At Levitt & Slafkes, P.C. we’ve represented individuals throughout New Jersey who want to eliminate their debt in a Chapter 7 bankruptcy. In this blog we will explain what can happen if you hide assets when filing Chapter 7 bankruptcy and why you should never do so.
What Assets Must You Disclose In A Chapter 7 Bankruptcy?
When you file a Chapter 7 bankruptcy, you are required to fully disclose all your assets.
Your assets include:
- Real estate
- Vehicles
- Bank accounts and the amount in them
- All financial accounts including cryptocurrencies
- Cash
- Jewelry or collectibles
- Retirement accounts
- Business interests
- Lawsuits or potential legal claims that you have such as for a medical malpractice or personal injury
What Does “Hiding Assets” Mean in a Chapter 7 Bankruptcy?
Hiding assets means that you intentionally did not disclose all your property and income in order to keep it out of the bankruptcy process.
This can include the following:
- Not disclosing a transfer of property that you made to a friend or family member before filing
- Not listing all of your bank accounts or cryptocurrency or other valuable item
- Undervaluing assets in your bankruptcy petition
- Not listing all the real estate that you own
What Happens If You Hide Assets in A Chapter 7 Bankruptcy?
Bankruptcy is governed by federal law and honesty is not optional. If the bankruptcy trustee or a creditor finds out that you’ve intentionally hidden assets, your case could be dismissed, and your debts will not be discharged. You could also be prosecuted for bankruptcy fraud.
This rarely happens as most people are honest in declaring all their assets. If you are unsure if something is an asset, tell your attorney and they can decide.
What Happens If I Accidentally Don’t List an Asset?
If you honestly forgot to list an asset, tell your attorney immediately. Your attorney can file an amendment with the court to list the asset.
Contact Levitt & Slafkes for a Free Bankruptcy Consultation
At Levitt & Slafkes, we help our clients thoroughly prepare their bankruptcy petitions to avoid errors and reduce the risk of missed disclosures. We are here to help! Call us at 973-313-1200, or contact us online to schedule a consultation at no cost.