What happens if I lie on a Bankruptcy Petition?

One question people often ask when filing bankruptcy is 'what happens if I lie on a bankruptcy petition?' There are two motives for people to ask what happens if I lie on a bankruptcy petition; one is if they want to lie on a bankruptcy petition and hide their assets and the second reason is what if they don't know the correct information and found out later that they gave the incorrect information when filing bankruptcy. Either way, what happens if I lie on a bankruptcy petition becomes a question of importance.

Hiding assets from the Bankruptcy court

Alot of the time, when filing bankruptcy, people want to hide their assets. Alot of people feel the need to lie on a bankruptcy petition to avoid losing some assets. For example, you may want to take money out of your bank account or give your assets to your family members for safe keeping.

However, when filing bankruptcy, the bankruptcy laws state that you need and must list all assets no matter where they are. However, if you lie on your bankruptcy petition, you will face severe penalties. Whatever you did before bankruptcy filing, you must disclose. If you did something reasonable, the court will not frown upon. But, if you did something with the intended purpose to defraud and cheat the bankruptcy system, then the bankruptcy court will penalize you as such.

Bankruptcy lawyers responsible to uncover all information

The new bankruptcy laws made bankruptcy lawyers responsible for uncovering all your assets and information and ensuring that the bankruptcy filing is accurate. If you lie on a bankruptcy petition, your bankruptcy lawyer will get into trouble along with you when the truth comes out even if it comes out much later on after the bankruptcy filing.