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The bankruptcy process follows rules with much of the onus on the debtor to provide information and documentation. If the debtor is unable to show that disclosures of debts and assets to the court and trustee’s satisfaction, it may result in denied discharge and could lead to criminal charges.

As a debtor, you may feel that certain financial records, assets or debts are not subject to scrutiny in the bankruptcy process. There are also countless alleged loopholes that claim to allow debtors to escape declaring assets. If you are considering filing for bankruptcy in the state of Georgia, speaking to an experienced lawyer is recommended.

Financial Records

Personal and official records can paint a complete picture of your financial affairs. By attempting to hide or destroy these records, debtors could manipulate the value of assets. It is your responsibility to supply accurate information to the court and trustee. Failing to do so may see discharge of debt denied.

Bankruptcy Documentation

Along with the standard documentation required for each type of bankruptcy, the court or trustee may request additional information. Failure to provide such information can delay the process or result in denial of discharge for related debts.

False Statements

If you provide statements, whether in writing or testimony, what you say will affect the course of a bankruptcy. False statements may relate to finances, assets or any debts. Any resulting disputes can lead to delays, denial of discharges or prosecution, depending on the seriousness of misinformation.

Hiding or Transferring Assets

Hiding assets can take many forms, all of which are considered an attempt to mislead the bankruptcy court. Debtors may physically hide assets or transfer property to other parties. If any such actions are considered an attempt to hide assets from creditors, it could amount to fraud in the eyes of the law.

A complaint against the debtor can lead to legal action initiated by a creditor or trustee. Potential consequences include dismissal of bankruptcy petition, which is often resolvable. However, in other cases a denial of discharges is the outcome of dishonesty or failure to provide required information. Debtors should also consider the potential for criminal prosecution when declaring assets and finances.

For a bankruptcy consultation that will set you on the right path in Georgia, call the offices of George R. Belche, Attorney at Law today.

George R. Belche, Attorney at Law