Bankruptcy and Disclosure

Quite often potential clients are hesitant to disclose certain facts to their attorney involving present and future assets. As part of the bankruptcy planning process this omission can and will cause problems once discovered. Clients may insist that they were not asked a specific future asset question or in cases of bank accounts, they may have plain forgotten they were on a joint account for a grandchild 25 years past and the account is still active. Properly disclosed these small assets can be explained with little or no problem. If discovered during the bankruptcy process by either the United States Trustee of the Chapter 7 or 13 Trustee it can lead to a great deal extra work and stress. Bank account and other financial account information is often directly tied to ones social security number. This number is how a bankruptcy debtor is often identified, in spite of what is printed on ones social security card. While this particular bankruptcy problem can often be resolved without criminal action by the United States federal government authorities, it tends to disrupt the bankruptcy client’s peace of mind. If one can remember that bankruptcy is a matter of disclosure and that most personal assets can often be protected, or that a particular case may require more extensive pre bankruptcy planning than others. Keep the faith