When filing for a Chapter 7 bankruptcy, you are required to make full disclosure of all assets that you own, including both exempt and nonexempt assets.
However, some people attempt to conceal assets or legitimately forget that they have them and end up leaving them out of the bankruptcy application. Here’s what could happen if you hide assets when filing for bankruptcy in Texas.
You Will Still Owe Your Debts
If you are found to be hiding assets while your case is still being filed with the bankruptcy court, you may no longer be eligible to have your debts discharged — generally the entire reason that consumers choose a Chapter 7 instead of Chapter 13. Unfortunately, you’ll still lose your non-exempt assets to pay your creditors, and you’ll also be responsible for any leftover debt.
Your Discharge May Be Revoked by the Court
You may be able to hide assets until your case is closed, but it’s important to be aware that this doesn’t mean that you’re in the clear. Your discharge may be revoked by the trustee up to one year after your case was closed.
You Won’t Be Able to Claim Those Debts in Future Bankruptcies
If your bankruptcy ended in either a denial or revocation of your discharge, the debts listed on that application cannot be listed in any other future bankruptcy. If you take on new debts and qualify for bankruptcy for those, you should still be eligible to file — you just won’t be able to include any of the previous debts.
You May Also Face Criminal Charges
Your bankruptcy application is signed under penalty of perjury, which means that if you lie or falsify information on the paperwork, you could be held responsible. In the State of Texas, perjury is usually a Class A misdemeanor, which is the highest level before the charge becomes a felony. A judge can issue a sentence of up to one year in jail and/or a fine of up to $4,000 depending on the severity of your case and the value of the assets that were concealed.
Get Help from an Experienced Texas Bankruptcy Lawyer Now
If you’re thinking about filing for bankruptcy to get out from under crushing debt, you’re one of millions of Americans. An experienced Texas bankruptcy attorney can assist you in selecting the right type of bankruptcy for your needs and will help you fill out your application thoroughly and accurately. Call now for an appointment at 469-751-7467.