Importance of Accuracy in Bankruptcy Schedules

When you are filing for bankruptcy it is important to make sure you review your bankruptcy petition carefully to make sure you have included all of your debts and assets. If you have questions about what should be included on the bankruptcy petition you need to ask the attorney. It is of the utmost importance that you list all your bank accounts, any transfers made to families or friends, any land transfers, any legal entities that you have an ownership interest in, cash on hand, and all other information required on the bankruptcy schedules. If you are filing a Minnesota bankruptcy the burden is on the client to fully disclose all assets. The problem becomes if a client does not disclose all possible assets, the bankruptcy trustee may begin to think that they are intentionally concealing assets from the bankruptcy estate. If this is the case it can lead to a 727 non dischargeability action initiated by the trustee. In most cases by the time a client has reached the 341 meeting they have had a chance to review their bankruptcy petition at least four times. In most cases this is sufficient to ensure an accurate bankruptcy petition. The moral of the story is be honest and list all of your assets. If you are unsure whether an item needs to be listed, you should ask your attorney.