When considering the issue of hidden assets, it is typically in the context of divorce proceedings. People going through divorce hide their money in order to prevent having to share it in a divorce settlement. However, people may attempt to hide assets for many reasons, in some cases being motivated by the prospect of bankruptcy proceedings.
Why Do People Hide Assets?
Some people believe that hidden assets will help once they qualify for bankruptcy and that they will then have a greater chance of recovering from a distressing financial situation. This is not the case. If your hidden assets are discovered after filing, you may no longer qualify and may lose your property. Even more problematic is the possibility of being accused of fraud. There are harsh penalties that accompany a fraud conviction and you may have to consult a criminal defense attorney.
It is important to be honest about your financial situation. Bankruptcy is designed to help you, and if you are honest, you greatly increase the chance that will you be approved and get the help you need.
Before you make the mistake of hiding assets while applying for bankruptcy, even by accident, contact the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, at 414-377-0518 to learn about the possible repercussions of misrepresenting your financial situation.