Bankruptcy petition mistakes
It is critical to remember that your bankruptcy petition must contain a complete and total disclosure of all your assets and debts. Not just the debts you wish to disclose or discharge, but all debts including potentially non-dischargable debt like student loans and taxes.
Deciding to leave off assets or debts can open one up to bankruptcy fraud as each petition is signed under oath as a complete and total disclosure of all assets and all debts. Although prosecution is rare except in egregious cases revocation of your discharge or seizure of your assets that would otherwise would have been exempt are more common than many realize. The bankruptcy trustee is tasked to investigate your disclosures via public records such as deed records and tax records- so don't tempt fate and disclose everything!
Items that must be disclosed
- Wedding rings.
- Land or houses in another State. (includes jointly owned inherited property)
- Business entities you started or owned in the last 6 years even if no assets.
- 401K's, IRA's, Annuities, or pensions with very little value.
- Life Insurance. (often provided by an employer)
- Transfers or sale of houses or cars.
- Those random 20 shares of stock that was a gift from grandma or your employer.
- Payments to friends or family for money they loaned you.
- That medical provider or family member you don't want to be sent notice you filed.