Failing to disclose assets in a bankruptcy case is a serious problem and can be bankruptcy fraud. As a Will County, IL bankruptcy attorney, I am always asked questions concerning what assets have to be included in one’s bankruptcy and the ability to take different actions in order to retain property that would have to otherwise be turned over to creditors.
Inevitably, each day someone will ask if he or she can transer a piece of real estate or a vehicle to a family member or friend in an attempt to keep the property it if he or she decides to file bankruptcy. The question is a valid one and is worth asking especially since most people have not been through the bankruptcy process. The simple answer, however, is no you cannot and should not attempt to do so. Any transfer of property to a family member or other “insider” can lead to a variety of problems including the possibility that the Trustee of the bankruptcy court brings an action to recover the property from whom ever it was transferred to. If a transfer has been made to an “insider” within a year (and sometimes longer) you run the risk of creating serious problems in your bankruptcy. If you transfer property and do not disclose the transfer you have now possibly opened yourself to a wide range of civil and criminal penalties. One point needs to be emphasized. Bankruptcy is governed in large part by federal law and the United States Trustees Office is affiliated with the United State Department of Justice. You can see why it is not a good idea to play games in this regard just as you would not do so with the IRS. All income, assets, debts, liabilities, etc have to be disclosed. Full disclosure is the rule in bankruptcy.
That being said, there is a difference between bankruptcy fraud and bankruptcy planning. Consulting with a Joliet bankruptcy attorney will allow you to go over all your property and discuss what laws are applicable. A competent Joliet bankruptcy attorney should be able to give you some guidance as to what property can be retained and what may not. An attorney will also be able to advise you if you have made transfers to family members or other “insiders” prior to filing for bankruptcy. If you are concerned about being able to keep an asset or whether or not a transfer is lawful you need to ask. You may be seeking to take of course of action that is not lawful or will not prove successful but the same goal may be able to be achieved sucessfully using the bankruptcy laws. The most important thing a possible client can do is disclose everything.
Once everything is known a course of action can be devised. Many people cannot file a bankruptcy the day the come into our office because most of our lives are not lived as if we are planning to go bankrupt. In many cases failing to disclose property is not only illegal it is unnecessary. There exists a wide range of governing statutes and case law that can be applied in many cases to ensure that a debtor obtains the most favorable resolution to these issues as possible. A Joliet bankruptcy attorney should go over all of your assets and advise you on how best to achieve a resolution that is both lawful and beneficial to you. If you do not disclose the asset, transfer, or source of income the debtor is is taking a major risk and it may have been an issue that could have been resolved during the bankruptcy planning process. Many issues that appear to be problems to the clients can and often are resolved prior to filing the bankruptcy or within the bankruptcy case. Discussions with a Joliet bankruptcy attorney are confidential even at the intial consultation so you should rely on that protection and go over every aspect of your financial situation. The attorney is your advocate and works for you. Do yourself a favor and have a free and open conversation with the attorney and you will often receive better results and protection of your interests.
Please call Hamilton & Antonsen, Ltd at 815.729.9220 or email us at info@halawoffices.com to set up a free meeting to get your bankruptcy started today.
