Why Full Disclosure of Assets Is Critical in Bankruptcy—and How the Stone Law Firm in Columbia, SC Protects Its Clients Through Due Diligence
Filing for bankruptcy can offer a clean financial slate and fresh start—but only if done properly. One of the most important aspects of a successful bankruptcy case is full and honest disclosure of all assets for both Chapter 7 and Chapter 13 bankruptcy cases. Incomplete or inaccurate disclosures can lead to denied discharges, loss of property, or worse—allegations of fraud.
At the Stone Law Firm in Columbia, South Carolina, we recognize that most clients are honest people who simply don’t know what to list, forget something, or misunderstand what counts as an “asset.” That’s why we go the extra mile to help our clients identify, list, and verify every asset before filing—so they can avoid problems and protect their right to a fresh start.
The Legal Duty to Disclose All Assets
Under federal bankruptcy law, debtors are legally required to disclose all assets they own or have an interest in at the time of filing. This includes:
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Cash and bank accounts
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Retirement and investment accounts
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Personal property (jewelry, furniture, tools)
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Interests in businesses
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Tax refunds
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Gifts, inheritances, and more
Omitting even a small or forgotten asset—such as a pending tax refund or a car titled in your name but used by someone else—can lead to serious consequences, including losing that asset, denial of your discharge, or reopening of your case after discharge.
The Attorney’s Role in Protecting the Client
A bankruptcy attorney is not just a form-filler—they are a gatekeeper and advisor. Under professional rules of conduct, attorneys are required to conduct reasonable due diligence into a client’s financial affairs before filing a bankruptcy petition. This means reviewing documents, asking the right questions, and not relying solely on what a client remembers or believes.
At the Stone Law Firm, we take this duty seriously—because doing it right the first time protects our clients from headaches down the road.
Required Documents Before Filing: A Better Process from the Start
One way we protect our clients is by requiring a core package of financial documents before any bankruptcy petition is filed. These documents form the foundation of a solid, accurate case:
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Federal tax returns (typically 2 years)
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Paystubs (last 60–90 days)
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County tax assessor records for homes and vehicles
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Lawsuit and judgment documents (both as plaintiff and defendant)
These records are not only required by the bankruptcy court—they’re essential for properly identifying assets, evaluating exemptions, and preparing an honest and complete petition.
Stone Law’s Comprehensive Due Diligence Tools
Our firm goes far beyond the industry norm by using a multilayered due diligence system to uncover all potential asset issues and protect our clients. Here’s how:
1. TruthFinder Reports
We run public records reports using TruthFinder, an advanced search tool that flags:
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Real estate in any state
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Vehicles
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Business affiliations
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Court cases
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Unpaid judgments or liens
This helps us catch things a client may not know about or forgot—such as old assets that are still in their name or pending litigation that must be disclosed.
2. In-Depth Asset Questionnaire
Our custom-built questionnaire guides clients through every category of assets, income, and transfers. Many debtors are shocked to learn what legally qualifies as an “asset,” including:
We ask the right questions—because good answers come from smart questions.
3. PACER Court Database Checks
We check the PACER federal court system for:
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Previous bankruptcies
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Federal tax liens or judgments
This gives us a full picture of the client’s financial history and prevents mistakes in reporting prior filings or pending claims.
4. Document Review & Cross-Verification
We don’t just collect documents—we analyze them using AI. That includes:
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Matching bank deposits to income and transfers
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Comparing property valuations to county tax records
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Reviewing paystubs for bonuses or irregular income
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Evaluating mortgage balances and escrow accounts
This hands-on review ensures accuracy and helps us protect exempt assets from liquidation. Please note we need your permission to use ChatGBT to engage in this in-depth cross checking.
NEW: ChatGPT-Powered Bankruptcy Verification Reports
Starting in 2025, the Stone Law Firm is launching a groundbreaking new due diligence tool for clients who opt in: a ChatGPT-powered bankruptcy audit report.
Here’s how it works:
After collecting all the client’s financial data and documents, we run the combined information—tax returns, paystubs, bank records, asset disclosures, lawsuit data, and more—through a secure ChatGPT-based system. This system generates a concise due diligence summary that:
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Cross-checks data for inconsistencies
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Flags any missing or conflicting entries
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Suggests potential issues with exemptions or asset disclosures
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Offers attorney-facing summaries to double-check before filing
This AI-powered analysis doesn’t replace human legal review—it augments it, giving our attorneys a second layer of precision and helping us catch subtle discrepancies before they become problems in court.
Clients love it because it means their petition is cleaner, faster, and more bulletproof. Trustees appreciate it because it means fewer questions and objections at the 341 meeting. And most importantly, it gives our clients peace of mind.
Why This Matters to You
Bankruptcy is a second chance—but only if it’s done right. A missed detail can derail your case, delay your relief, or even cost you your discharge.
At the Stone Law Firm, we’ve built our reputation on being thorough, ethical, and client-focused. We believe that no one should go through bankruptcy with uncertainty hanging over their head. Our layered due diligence approach, document requirements, and new ChatGPT-powered checks ensure that your case is not only prepared—it’s verified.
Ready for a Clean Slate?
If you’re facing debt, lawsuits, garnishments, or overwhelming bills, don’t take a chance with an assembly-line law firm. Choose a team that will protect you with real diligence and modern tools. The Stone Law Firm in Columbia, SC is ready to help. We have offices in Columbia, Greenville, Florence, Irmo, and Charleston. No matter where you live in SC, we can help.
📞 Call us today or visit our website to schedule a free consultation. Let us build a plan that is thorough, strategic, and tailored for your success.