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Consequences of Asset Hiding When Filing Bankruptcy in Jackson, MN

May 1st, 2019 · No Comments

If your debts are severely affecting your quality of life or the function of your business, it may be the right choice to look for realistic debt relief options. While some debt relief options are possible in negotiations with creditors and third parties, filing bankruptcy offers truly permanent, court enforced/sanctioned solutions for debt relief. When you find yourself looking for answers in a complicated financial world, Behm Law Group, Ltd. can provide all the assistance and guidance you need when filing bankruptcy in Jackson, MN

 

Bankruptcy resolves in several ways depending on the type of chapter you qualify for:

  1. If you’re an individual filer or a business with debts that outweigh income, you can qualify for Chapter 7 bankruptcy. This process works to liquidate your non-exempt assets in exchange for the discharge of your debts.
  2. If you don’t qualify for Chapter 7, you can qualify for Chapter 13 as either an individual filer or as a business. This process works to restructure your debts into a manageable repayment plan lasting three to five years. A similar process some businesses can choose instead of Chapter 13 is Chapter 11, which works very large businesses and individuals with very high incomes and very large amounts of debt.
  3. Finally, family farmers and fishers have a specialized bankruptcy process through Chapter 12. This is also a repayment plan structure, but it is designed to be processed in an expeditious legal protocol that is uniquely tailored to the specialized nature of the filer.

 

No matter what type of bankruptcy you file, there are certain parts of the process that are the same in all chapters. One major consistency between every single case that has ever been and will be filed is that the filer must be completely transparent about their finances.

 

Transparency about your finances, whether you’re filing as an individual or as a business, includes providing information to the court about your debts, income, living expenses and assets/properties. Failing to provide this information can result not only in your case being dismissed but also in having accusations of fraud leveled against you. You sign your bankruptcy paperwork under oath and subject to penalty of perjury.  One common type of bankruptcy fraud is asset hiding.

 

If you hide your assets, you can expect several consequences in your bankruptcy case, all negative:

  1. Your debts connected to that asset won’t be discharged because it’s impossible to treat a property secured debt in bankruptcy without revealing the asset.
  2. Discharges provided in your case may be revoked when the asset is inevitably revealed.
  3. If you file for bankruptcy in the future, previously hidden debts cannot be discharged.
  4. If you commit fraud, you can be sued and even face criminal charges with hefty fines or jail time attached.

 

If you’re planning on filing bankruptcy in Jackson, MN, contact Behm Law Group, Ltd. today at (507) 387-7200 to learn more about how our attorneys can help and for comprehensive counsel throughout your case.

Tags: Bankruptcy · Bankruptcy Advice ·


 

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