Bankruptcy Law Firm

SMARTblog Website

  • About Us
  • Blog
  • Chapter 7
  • Chapter 13
  • Testimonials
  • Contact Us
You are here: Home / Bankruptcy Options / Crucial Question: What Do I Need to Disclose to the Bankruptcy Court, and Why?

Crucial Question: What Do I Need to Disclose to the Bankruptcy Court, and Why?

November 10, 2014 by Mikel Erdman

You don’t like the idea of disclosing your financial life to the bankruptcy court. Can’t it be done with some privacy?

 

The Costs vs. the Benefits

Let’s face it: there are certainly some costs that come with the benefits of writing off all or most of your debts and the other protections of the bankruptcy laws. Depending on your attitude about all this, the general frustration and embarrassment of needing to use this legal option is one of the costs. Related to that is the indignity of having to put on paper certain details of your finances.

What this “costs” you does depend on your attitude. We’re not here to tell you what your attitude should be about making use of the bankruptcy laws—it’s a deeply personal thing. What we do suggest is that you DO think about and weigh the costs and benefits involved. Find out from blogs like this and from your own attorney what are the true “costs” involved, what are all the likely benefits, then make sure you understand the options, and make a calm decision about whether it is worthwhile to file the type of bankruptcy that is best for your circumstances.  

The Reason for the Required Openness

It may help to know that there are limits on what you need to disclose. It may also help to know why you need to disclose your financial information.

One of the core principles of consumer bankruptcy law is that people who get into financial trouble should be allowed a fresh start, but to do so they have to meet certain usually reasonable conditions.  For example, you generally can’t write off a debt if you incurred that debt by committing fraud, such as by lying on a financial statement about your assets. Similarly, you can’t write off your debts if you’re trying to cheat the system. So you have to be candid about your debts, your assets, income and expenses, and other aspects of your financial affairs so the bankruptcy system can see whether you meet the required conditions. You can’t try to hide the ball from the bankruptcy court.

While you might not like disclosing your financial details to the scrutiny of the bankruptcy court and bankruptcy trustee, the system operates under a strong theme of openness. Again, you only get its protections if you follow the rules. Basically, you get the rather generous benefits of the bankruptcy system if you are an “honest debtor.” And the purpose of the information you provide is essentially to establish that you qualify as that “honest debtor.” The vast majority of people filing bankruptcy ARE, and in all likelihood you are, too.

The First Person to Be Honest With

After facing your situation candidly and maturely yourself, and then hopefully with another person or two who you know and trust, we then urge you to be completely upfront with your attorney. If you have a first meeting with one who don’t feel like you can be frank with, don’t hire him or her. Find one with whom you can speak with freely and candidly. He or she is the person can tell you objectively what you legally need to reveal and what you don’t need to, and why, and what, if any, the consequences for doing so will be.  If you do this you will get the peace of mind that you are being that “honest debtor” and so can expect to get the benefits of being one.

 

Filed Under: Bankruptcy Options Tagged With: bankruptcy eligibility, bankruptcy judge, bankruptcy option, bankruptcy trustee, discharge of debts, fraud

Avatar

About Mikel Erdman

Mikel Erdman is the founder of MySMARTblog and RealtyBlogContent. He is a published author and speaking authority on topics including marketing automation and how technology can positively affect company and individual sales efforts.
If you like the idea of world-class content marketing in a completely automated system, Click Here for his valuable, limited time offer.

Contact Information

Bankruptcy Law Firm
1000 E. Law St.
Cash, California 55555
Business: 123-456-7891
Day Hours
Monday 9:00 AM to 5:00 PM
Tuesday 9:00 AM to 5:00 PM
Wednesday 9:00 AM to 5:00 PM
Thursday 9:00 AM to 5:00 PM
Friday 9:00 AM to 5:00 PM
Saturday Closed
Sunday Closed

Our Clients Words

Michael's service is second to none. I'm fortunate to have selected his firm to represent us in this serious matter.
— Clyde Drexler

I've had so much fun as a judge on American Idol this year. I just hope the censors let me back on so I can sing, sing, sing!
— Steven Tyler

I love baseball, apple pie and Chevrolet. By the way, I'm hitting it straight outta this park!
— Babe Ruth

It's been a wild trip so far. I can't wait to see what's right up around the corner. Thanks for the surprises!
— Terry Bradshaw

Recent Posts

  • More Bankruptcy Advantages with the Foreclosure Moratorium
  • Bankruptcy Advantages with the Foreclosure Moratorium
  • Short Extension to Foreclosure Moratorium
  • Student Loan Moratorium Extended through September 2021
  • Eviction Moratorium Extended through March 2021

Archives

February 2021
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
« Jan    

Copyright © 2021 · Powered by MySMARTblog