Did you know that eight out of ten Americans is in debt? That’s hundreds of millions of people across the country who owe their money to somebody else. And for a lot of those people, that debt is overwhelming. It’s no wonder that so many people have to turn to bankruptcy in order to get a handle on their finances and their lives again. Being in debt is consuming and stressful and not something you want to be drowning in. However, some people, when faced with bankruptcy, are afraid of losing some of their assets. It’s a natural fear, but a lot of people go about it the wrong way.
Hiding assets during bankruptcy
Putting yourself through the bankruptcy process is scary, and it’s intimidating. It’s an unknown. Because of this, many people try to hide their most valuable assets from their lawyers, in an attempt to keep them and not have to include them in their bankruptcy proceedings. People will do this by transferring their assets to other people, or under false names. Some will create fake mortgages in order to make an asset appear to have no value. In addition, failing to disclose your assets to your lawyer during the bankruptcy proceedings is considered hiding your assets.
Penalties for hiding your assets
There are so many reasons not to hide your assets during bankruptcy. The bankruptcy trustee knows how to find these hidden assets, and so it won’t end well for you. They will find your hidden assets by reviewing your debts, online asset searches, public record searches, tax returns, payroll slips, deposits into unmarked or retirement accounts, and reports from friends, spouse, and family. Hiding your assets is an impossible task, as they aren’t actually hidden.
If you fail to list your assets, you may not be allowed to claim your right to those assets once they are discovered. And if the trustee finds out that you hid assets, you won’t be able to discharge your debts. Meaning that you’ll be required to continue paying your debts after the bankruptcy is completed.
Talk to your lawyer about your concerns
If you are concerned about saving any of your assets, or what you can do to preserve any of your assets, talk to your bankruptcy lawyer and see what your options are.