In March of 2013, the U.S. Trustee’s office suspended bankruptcy disclosure audits due to budget cutbacks. One year later, those audits have resumed.
When filing bankruptcy, the debtor should be fully aware of the importance of disclosing all of their assets, creditors, income, expenses and financial history. The Stone Law Firm takes this very seriously. Failure to comply to full disclosure could result in prosecution for bankruptcy with possible penalties resulting in up to five years in federal prison and a $250,000 fine. It is very important for the debtor to review his/her filings to ensure that, to the best of his/her knowledge, the information is accurate and that there is no intent to defraud the bankruptcy court.
Here at The Stone Law Firm we will work with you to avoid any possible issues in the future. We understand that most debtors have no intention of falsely filing for bankruptcy and how easy it would be to overlook something that might seem insignificant.
Should you decide to file for bankruptcy in the future, or if you are in the process of doing so now, remember the importance of disclosure. You are disclosing under penalty of perjury.