Folks, its not a close call. The number one rule of bankruptcy is full disclosure. Filing for bankruptcy affords the opportunity for tremendous relief, however, it comes with a price. Full disclosure requires detail and diligence. Short of itemizing dust bunnies underneath your sofa, it is impossible to disclose too much information to the Court or your attorney. Often consumers have the mistaken impression that the sole focus of their bankruptcy case will be debt. As Lee Corso likes to say: “not so fast my friend.”
While your bankruptcy attorney will advise you as to whether a particular debt will be dischargeable, he or she will likely be more concerned with discussing how the bankruptcy process will affect your property. The bankruptcy “quid pro quo” is fairly simple. In order to obtain a fresh start and get out from under burdensome debt, you agree to lay all your cards on the table. Everything you own must be disclosed in the papers that you file with the Court. Full disclosure is a must. Want your bankruptcy case to go smoothly? Tell your bankruptcy attorney about everything you own. Answer the questions he or she asks you truthfully. Although mistakes made in good faith can be remedied through amendment, if you attempt to hide assets from the Bankruptcy Court, trustee or your attorney, you can jeapordize your discharge and may be prosecuted for a federal crime.