Should you put your assets in someone else’s name before you file for bankruptcy? You might have heard of people using this trick to try to shield their assets, but is it a good idea?
The answer is no. Putting any assets in anyone else’s name would be the worst thing you could ever do prior to filing a chapter 7 or chapter 13 bankruptcy. Please don’t even think about it unless you are considering relocating to federal prison.
The bankruptcy code is designed to protect the honest but unfortunate debtor. When a debtor is dishonest, the bankruptcy code provides remedies to not only the creditors but to the court and the Justice Department. You do not want to be on the other end of a bankruptcy fraud investigation. There have been quite a few celebrities who have gone to jail because they thought that they could defraud the bankruptcy court. Remember that bankruptcy fraud is a federal crime, and it carries severe penalties.
Never listen to what the friend of your neighbor’s cousin did several years in some bankruptcy court that no one has ever heard of. It will only get you into trouble, especially if they tell you to hide your assets. Also consider that someone with a grudge against you, like an ex-spouse, can ruin your life if they find out you lied about your assets in your bankruptcy filing. All they have to do is pick up the phone, tell the bankruptcy trustee about your massive sports memorabilia collection, and you could have a fraud investigation started against you the very next day.
Hopefully, the point is crystal clear. If you are thinking about not disclosing an asset or doing something else, trust our team from Dellutri Law Group, it’s not worth it. Breaking the law is not worth it.
If you are having trouble with your finances and would like a complimentary strategy session with one of our expert bankruptcy attorneys, please contact us and let us help you.