Failing to disclose all of your debts and assets in bankruptcy filing is a very bad idea. In fact, if you do so on purpose, it's a crime and can be considered fraud.
When you file for bankruptcy, you're doing so under penalty of perjury. As a result, when you file, you're swearing that your forms are complete.
Because the forms ask you to list "all" property, income, and debts, filing incomplete or inaccurate bankruptcy forms can lead to your case being dismissed and may result in financial and criminal penalties depending on whether the court believes your intention was to commit fraud.
Bankruptcy can't help you hide debt, nor is it advisable to omit creditors you have personal dealings with, like a family member or local business. You should also include any disputed debts. Once your debts are discharged it will include all eligible debts.
Before filing for bankruptcy, you should consider consulting an attorney who can help you weigh your options. Declaring bankruptcy frees you from paying all or part of the debt you owe, as long as you're honest with your attorney and don't hide your information.
Castle Law Office has been handling bankruptcies for Kansas City clients from more than 14 years. If you need the fresh start bankruptcy can provide, call us today at 816-842-6200 to speak with an attorney. Or click here to email us and schedule your free consultation.