Be Honest When Filing For Bankruptcy

After the bankruptcy code changed in 2005 it has made it tougher to file for bankruptcy. The reason that Congress felt it was time to change the bankruptcy code was because there was too many serial bankruptcy filers. There were many dishonest people that would just run up their credit card bills, then file bankruptcy and wipe them out, then do it all over again. Because of this the code was modified drastically to try and stop this behavior. One of the biggest additions to a bankruptcy filing was the means test. The means test was basically a way to limit the amount of money an individual could make when filing for bankruptcy. The test would average the last six months income and compare it to the median income of the bankruptcy filer’s state. Also included in the test was the evaluation of the debtor’s expenses versus their income. With the addition of this and a few other landmines, it’s become evident that an individual should use a bankruptcy attorney to file.

In this day and age of technology, it’s not a good idea to lie on your bankruptcy petition. The bankruptcy trustee has an unlimited amount of resources to search the debtor’s background if they choose. Going back to the idea that, . Trying to defraud your creditors can end up bad for the debtor. Filing bankruptcy is under the US federal court system and the penalties for fraud and perjury can be devastating. It doesn’t take much for the bankruptcy trustee to search some social networking sites like Facebook and find out personal information about the debtor that they failed to mention in the bankruptcy. In extreme circumstances, the bankruptcy trustee can search the property to see if the debtor is not listing all of their property. This is not a good idea because the best that could happen is a dismissal of the bankruptcy and the worst could end up with jail time. The person’s debt will no longer be the biggest problem they need to worry about.

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