When you file bankruptcy, you’re signing a stack of papers under oath, and then you’ll be asked, under penalty of perjury, whether they list all your assets, income, and about any recent transfers. The wrong answer could land you in jail for bankruptcy fraud.
A woman in Michigan recently pled guilty to bankruptcy fraud. Wait, jail? Bankruptcy is just forms, right? Just before filing bankruptcy, she had received a $12,000 workers’ compensation award, then made it disappear, then lied about the whole thing. Now she faces five years in prison, $250,000 fine, or both.
The sad kicker is this: in California, this likely could’ve been avoided. Had everything been disclosed, and then properly exempted, she’d be free today, enjoying her discharge and money. Had she just told the truth to her bankruptcy lawyer, and then in the bankruptcy papers, a good Los Angeles bankruptcy attorney could have exempted the award, and she’d have it to spend when the bankruptcy is over.
By trying to save a few bucks on maybe the best bankruptcy lawyer, she’ll not only lose $12,000, but maybe twenty times that, and her freedom. Contact me today for a consultation, and let’s guide you to a honest fresh start.