You must “tell the truth” on your bankruptcy schedules, bankruptcy advice sites intone.
Most of us shrug that off: we can’t imagine deliberately lying to a court.
But carelessness about bankruptcy schedules abounds.
If you give the bankruptcy process just a lick and a promise, the resulting schedules aren’t truthful, not because of lies, but because they aren’t complete.
Carelessness has consequences
When the debtor doesn’t take the time to consider all his legal rights and intangible assets; when he makes assumptions about what the law covers; and when he includes only the debts that represent trouble, he makes trouble for himself.
Bankruptcy schedules that are less than accurate allow judges and prosecutors to inquire as to the debtor’s motives. That’s not a good place to be as a debtor. [Read more…]