… To avoid criminal prosecution.  Individuals can be charged with perjury if they hide assets or lie to the court.  Bankruptcy is not a scary process, so do not let this worry you.  Just make sure that you aren’t trying to take advantage of the situation, and everything will be fine.

To protect your discharge.  The trustee in your case can ask the court to deny your discharge, because you were not honest.  This can become a terrible situation, because …

Tags: Assets Bankruptcy Honesty

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… income on his bankruptcy paperwork, giving the impression that he was attempting to conceal income/assets and deceive the bankruptcy court. The bankruptcy court ruled that the debtor intentionally made false statements to the bankruptcy court at the time of his filing and that the statements were made with the intention to defraud.

The bankruptcy court said:

“It may well be that the debtor’s business activities receiving payment from construction jobs and having a 10 percent ownership …

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… must avoid when filing bankruptcy. It is not permissible to give away money or any other assets to friends or relatives (or anyone else) before filing bankruptcy in an attempt to avoid paying creditors or to hide assets. Fraudulently transferring assets before filing bankruptcy could cause a dismissal of your bankruptcy case or worse. Furthermore, failing to practice financial prudence before filing bankruptcy could result in an accusation of fraud. What that means is that you are …

Permalink: /bankruptcy/bankrupt-auto-dealer-accused-of-fraudulent-transfer-of-assets/

… Morning News, the Obama administration has unveiled a new program to purchase banks’ “bad assets” which will include toxic mortgages. The “bad assets” shopping spree will require $75 billion – $100 billion which will be taken from the existing $700 billion bailout program as well as private investors and the Federal Deposit Insurance Corp.

The article said:

Obama called it “one more critical element” in a multi-pronged effort to revive the economy and said the …

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… to pay creditors you may end up homeless by your own actions.

Do not begin to sell other assets such as cars, jewelry and electronics and use the cash to pay creditors of your choosing if you are considering bankruptcy. The bankruptcy court may consider those payments to be favoritism on your part and may dismiss your case or at least demand that the money/assets are returned to the bankruptcy estate.

If you are considering bankruptcy, speak with a Dallas- Fort Worth attorney …

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… attorney about what actions he should take which included a pre-bankruptcy sale of some assets.

Note to readers: The debtor did not wait until the repo man was sitting on his doorstep or his house was up for foreclosure. He took an assessment of his financial situation and immediately consulted a bankruptcy attorney once he realized that he could not possibly repay his debts.

After consulting with bankruptcy attorney, they came up with a plan to legally and fully …

Permalink: /dallas_attorney/pre-bankruptcy-planning-not-fraudulent-even-when-assets-are-sold/

… of financial affairs.  Under Chapter 7 bankruptcy, this will determine what you can keep, what assets you need to surrender, and who gets paid or discharged.  Under Chapter 13 bankruptcy, it will dictate how much your payments under the plan will be and for how long you be making them.

Intentionally leaving out an asset means running a very big risk of getting bumped out of bankruptcy completely–or even doing jail time.  Even leaving out a debt unintentionally means that debt will …

… possible, but it’s subject to bankruptcy court approval.”

This company has $4.65 million in assets and $5 million in liabilities, a significant shortfall. Will debtors who trusted this company get their money back? Well, nothing is for sure; but it’s guaranteed that priority debts such as taxes will get paid first before non-priority debtors receive a dime. Customers who gave the debt settlement company their money in hopes that they would pay creditors on their behalf will be …

U.S. District Judge Thomas Porteous, a Louisiana jurist, is charged with filing for bankruptcy under a false name along with other misdeeds. Judge Porteous faces impeachment for filing a personal bankruptcy petition for himself and his wife under a false name in 2001, filing false statements under oath during the bankruptcy proceedings and giving money and gifts to attorneys in trials where …

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… with 30 days from the date of Letter 1058, the IRS can levy your bank account, wages and other assets to collect back taxes.

If your bank account is levied by the IRS, your bank will have to pay to IRS whatever money is in your account on the date the levy is received by your bank. You have 21 days to get the levy released. If you do not take action, you bank will send the money in your account to the IRS which will be used to clear your tax dues. If your dues are still not cleared, …

… to note that if you decide to convert your Chapter 13 bankruptcy into a Chapter 7 bankruptcy any assets you acquired after filing Chapter 13 bankruptcy will be exempt from seizure.

… burned through millions in capital and was unable to make a profit.  In Chapter 7 bankruptcy it assets will be liquidated and the proceeds will be distributed to its creditors.