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 In Bankruptcy, Bankruptcy and Life, Blog

Are you uncomfortable telling your friends and family about your financial situation? Maybe you have been hiding your struggles for months or years, and pretending that you are in a financially sound situation. For a lot of people, admitting that you need help with your finances, or seeking bankruptcy protection can be humbling. Everyone wants to appear like they have it altogether, and bankruptcy is a straight declaration that your finances aren’t what they used to be. The fact is that total and complete honesty is the key to a successful bankruptcy. You will need to gear up and expose your financial status to the public. In fact, if you file for bankruptcy, you’ll be required to attend a meeting of creditors. This means that a bankruptcy trustee will ask you probing questions in a public room. One of your creditors can even ask you questions in the meeting about your financial spending habits. You will need to be open and honest, even if you are asked to share information that you would have rather avoided disclosing.

You will need to tell your lawyer and the court any information that they request. Withholding any facts could result in harsh penalties. Only an honest debtor is entitled to a discharge of debt. Not only must you be verbally honest, but you need to be honest on paper as well. You may need to admit that you own things that you have always kept hidden. If you try to hide assets and refuse to list them in your schedules, then you can lose your bankruptcy discharge. If the situation is really serious, you may even end up facing the FBI. Dishonesty in bankruptcy is a federal crime. If you need help with your bankruptcy filing, don’t hesitate to contact a Houston bankruptcy attorney at the Malaise Law Firm today! We are here to aid you by giving you sound advice and legal representation in your case!