What happens if I hide some of my assets during bankruptcy?

Assets are an important part of filing bankruptcy. The bankruptcy process requires that all excessive assets be sold to repay creditors. The good news is that most types of property are protected under the state or federal bankruptcy code’s exemptions. However, you still must declare the property on your bankruptcy documents, to ensure that the court knows about them. It is critical that you do this to ensure the bankruptcy process will continue.

Failure to Disclose

If you fail to disclose any of the assets you own in your bankruptcy documentation, the court is likely to find out. The court takes steps to investigate the types of property you own. Creditors may also report the type of property you may own. If the court does file out that you hid assets, one of the following circumstances may occur.

• If the court determines the omission was a simple mistake, the court may allow you to amend the documents and continue with the filing process.
• If you attempt to defraud the system, your bankruptcy case is likely to be thrown out.
• If the court determines that you did this purposefully to hide valuable assets, the court may also file fraud charges in a court of law.

It is rarely a good idea to try and hide assets. While it is unlikely that an inspector will come to your home, it is possible the court will find out.

Hire an Attorney

If you have hid assets or you are worried about protecting assets in a bankruptcy, speak to your attorney. Your attorney will work to ensure that as many assets as possible are protected.