Lying on your bankruptcy petition is a good way to land you in bad trouble.
I’d never condemn someone for lying. Perhaps there is someone out there who has never lied, never told an untruth. But I haven’t met that person. Let me be clear, however. I don’t condone lying. But I can understand why someone would.
And I will give a person who asks me if he should lie in his bankruptcy petition this simple advice: don’t do it.
Ms. Boulware, apparently, was either not given that advice, or decided not to heed it.
Bankruptcy is a mechanism by which someone can make a fresh start. And I don’t think that anyone who has gotten in over their head financially because of unforeseen circumstances should have any qualms about using it.
It isn’t a mechanism that should be abused, though. And I always kind of scratch my head when I hear about someone who has filed more than once. Ms. Boulware seems to have a different opinion. She filed for bankruptcy 16 times between 1995 and 2007, in three different districts.
What got her into trouble was that she didn’t disclose on her petition all her previous bankruptcy cases. That and violating an order prohibiting her from filing any bankruptcy petitions for five years. It took her only three months to violate that order. She’ll be spending 15 to 21 months in a federal jail.
You can read more about the case here: U.S. v. Boulware.
What Happens When You Lie On Your Bankruptcy Petition
A few things can happen on your bankruptcy petition. If you lie to conceal an asset, you will lose that asset. And that’s best case scenario. The next thing that can happen is that your discharge order can be revoked. Your discharge order is what protects you from creditors ever coming after you for dischargeable debts. You will still lose that asset you concealed. After that, you can have your entire case dismissed. When that happens, you’ve lost all protection of the bankruptcy court.
But the cherry on top is that you can go to jail. Lying on your bankruptcy petition is a federal criminal offense.
Talk To An Experienced Denver, Colorado Bankruptcy Attorney
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Read some of our other articles here:
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Should I Load Up On Debt Before I File Bankruptcy?