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Lying in bankruptcy court is never a good idea. What if you miscalculate a figure or omit information accidentally, though? At the end of the day, declaring bankruptcy is a legal proceeding with strict regulations, and even those who provide misinformation inadvertently could end up facing serious consequences. Here are just a few reasons to double-check everything you submit in writing, so you can avoid facing accusations of fraud.

3 Reasons to Never Lie in Bankruptcy Court

1. You Could Lose the Chance to Discharge Any Debt

If you lie in bankruptcy court, there are several potential consequences depending on the circumstances. Although minor transgressions are unlikely to result in prison time, you can expect the court to dismiss the case at the very least. That means you won’t be able to discharge any debt, and you could face additional fines on top of everything else. 

2. You Could Lose Valuable Assets

Ibankruptcyf you try to conceal assets, the bankruptcy court can force you to turn them over and then use them to pay off your debts. If you had disclosed everything from the start, though, you may have been able to retain ownership of the property, especially if you were filing chapter 13 bankruptcy. At the end of the day, liquidation regulations are designed to protect consumers, and an attorney may be able to help you take advantage of that fact. 

3. You Could Face Serious Criminal Penalties 

In more serious cases of fraud, debtors face prison time and up to $250,000 in fines. Those who end up going to prison will likely hurt their financial security a lot more than losing the assets they initially tried to conceal. Spending any time in prison will result in lost wages and benefits for your entire family and can hurt your future earning capacity, as well. 

 

If you are considering declaring bankruptcy and want to avoid inadvertently committing fraud, turn to Bueker Law Firm in Stuttgart, AR. At this firm, you can rely on compassionate legal representation from a seasoned team who will not judge your financial situation. Instead, they will help you find a way to regain your footing and secure a fresh start. Visit their website to learn more about the comprehensive services they provide or call (870) 673-1313 to schedule an initial consultation with a strategic lawyer today. 

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