Friday, May 18, 2012

Bankruptcy Attorneys Boise Idaho (208) 472-2383

Disclosing Debt and Assets in Bankruptcy
As a Boise Bankruptcy Attorney, one of the things I hear most frequently from people is whether they have to disclose all their debt and their assets for a bankruptcy and what happens if they don't.  If you fail to disclose your assets will be committing fraud and can be fined up to $5,000 and can be given up to a 5 year jail sentence or both. 

Why would someone conceal information from the Bankruptcy Court?  If you have assets that exceed your exemptions, those are used to pay off your debt to secured creditors.  If you don't tell the Bankruptcy trustee how much property you actually have, your intent would have to be to keep that property for yourself and not use it to pay your just debts.  In a bankruptcy you have to swear that you are disclosing all the required information and if you fail to you have committed fraud against the court.  Likewise, some people might not want to inform the Bankruptcy Court about certain debt they have.  As a bankruptcy lawyer I usually see this most often when they want to have credit available to them.  As you know, when you file Chapter 7 or Chapter 13 your credit will need some time to be repaired.  You need to disclose all your debt.  You can, however, approach the creditor and ask if they will allow you to keep the line of credit open.  It can happen, but is unusual.

Can I File for Bankruptcy?
If you are having financial difficulty this is a question you may have asked yourself or a bankruptcy attorney.  If you are in financial straights you can look into the possibility of filing for bankruptcy.  There are a few things that you cannot do, however.  You may not use bankruptcy to stall paying your debt, to delay, to obstruct, to harass or for any other improper purpose.  You also cannot, within 60 days of filing, incur a luxury purchase in the amount of $1.075 or more.  You also cannot receive an aggregate of cash advance in the same or greater amount.  If you do, that debt presumably will not be discharged.

Are There Alternatives to Bankruptcy
Yes.  Part of the new bankruptcy law is to require that those considering bankruptcy take two credit counseling courses.  The first course, which must be completed before your application is accepted, is aimed, in part, at helping people understand that they can negotiate with their creditors.  It is possible to develop your own repayment plan with creditors without taking the additional step of bankruptcy.  However, if you are seeking a discharge, it is unlikely that a creditor will discharge your debt completely.

If you are considering bankruptcy and need to speak to an attorney, give us a call, (208) 472-2383 and one of the lawyers in our office will help you understand bankruptcy and help you decide if it is right for you.