Talk to a Local Bankruptcy Lawyer
Enter Your Zip Code to Connect with a Lawyer Serving Your Area
Enter Your Zip Code to Connect with a Lawyer Serving Your Area
How can I minimize disposable income on schedule J of the bankruptcy petition?
Question:
How can I minimize disposable income on schedule J of the bankruptcy petition?
This article is provided for informational purposes only. If you need legal advice or representation,
click here to have an attorney review your case .
click here to have an attorney review your case .
This site does not provide legal advice and users of this site should not interpret any of the information presented here as legal advice. The information provided merely conveys general information related to commonly asked legal questions. We are not a law firm and the employees responding to questions are not acting as your legal attorney. You should ultimately consult with a Lawyer for your case.
By no means should you minimize disposable income on bankruptcy schedule J. Doing so runs the risk of raising a flag with the trustee and getting the bankruptcy dismissed, possibly with prejudice. Being dismissed with prejudice means that there can be no more filings from you in that particular district. If you are truly seeking relief from debt then it's imperative to be as honest as can be. Hiding income intentionally just gets you into trouble, so don't do it.
Why Honesty is so Important in Bankruptcy
Bankruptcy is a legal process which requires the petitioner to swear that they are telling the truth. Lying on the petition is considered perjury, something highly frowned upon in court. A majority of income has a paper trail. If the trustee comes across a record of a regular payment that wasn't included in the filing, and there is no good reason for it to have been left out, the trustee can sanction the petitioner.
Consider Hiring a Lawyer
If you're looking to file a chapter 7 and you feel your income is too high, talk to a bankruptcy attorney. A lawyer who's familiar with the process will defend you at the 341 meeting. They'll answer any and all questions the trustee may bring up in order to reinforce the fact that the petitioner has been truthful with their supplied information.