Filing Bankruptcy in Minneapolis-Refrain From Concealing Assets
Bankruptcy is designed to give an honest debtor a fresh start. The fresh start is accomplished through the discharge, but a discharge is not a right, but a privilege. While the denial of a discharge is an extreme penalty, inappropriate conduct by a debtor can justify the denial of the discharge.
What types of behavior can lead to a denial of discharge? All debtors are required to attend a 341 meeting with the case trustee to testify as to the information on their bankruptcy petition. Debtors that make false oaths of material facts during the 341 meeting or knowingly and fraudulently provide false information on their petition can be denied discharge. This is because the bankruptcy system depends upon on debtors providing complete and accurate information so the case may be administered appropriately.
The case trustee relies on the bankruptcy petition, and accompanying schedules and statements to get a picture of the debtor’s financial affairs. The court and the case trustee need to rely on these schedules without the necessity of conducting an independent examination to get the facts. A simple memory lapse or failure to disclose a small transaction will not result in a denial of discharge, the false account must be both material and made with intent.
A debtor is not entitled to a discharge if the debtor intended to hinder, delay and defraud a creditor or if the debtor concealed, destroyed, mutilated, falsified, or failed to keep or preserve information about their financial condition. A debtor is not entitled to discharge if they fail to explain satisfactorily the loss of assets or deficiency of assets. Explanations must be definite and have ability for corroboration or verification. Unsubstantiated, uncorroborated and undocumented explanations from the debtor is not likely sufficient. Debtors are required to provide adequate financial records to enable the court to trace the debtor’s financial history.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
When to comes to the bankruptcy petition and disclosing assets and transfers a debtor is smart to supply the court with honest and complete information regarding their financial past. Concealing assets and transfers can result in a harsh consequence. Contact the attorneys at LifeBackLaw and see us at www.LifeBackLaw.com and let us help you get your life back.
