Why You Need To Be Honest With Your Bankruptcy Attorney
Undertaking the bankruptcy process requires the borrower to inform his or creditors about any property or assets the debtor holds. Even if unintentional, a failure to disclose all properties and assets can unfortunately be interpreted as bankruptcy fraud. However, something that is discussed less often is how important it is to be honest from the very beginning of the process. For many people, the
filing of a bankruptcy petition comes after conversing with a qualified bankruptcy attorney. However, the knowledge of your attorney cannot overcome the potential consequences that could be incurred if you fail to be completely honest with him or her from the beginning.
Now that we have addressed the fact that the need to be honest begins with your interactions with your bankruptcy attorney, we reach the next relevant question: why?
Why is Being Honest Important in General?
Bankruptcy provides a pathway to financial relief that can be invaluable for those who have through honest circumstances found themselves overwhelmed by debt. While bankruptcy is filed most often as a result of some kind of medical crisis, it can also result from other legitimate factors such as:
- Job loss
- The ending of a marriage
- Becoming disabled
In addition, most people who file for bankruptcy are legitimate borrowers who are presenting information as best they know it. However, everyone is unfortunately not so honest. The bankruptcy process is sometimes used by dishonest people as an attempt to escape paying their debt despite actually having the financial means to pay this debt. This attempt to obtain financial relief through an illegitimate bankruptcy is better known as fraud. Statistics released by the FBI suggest that there are several hundred pending bankruptcy fraud cases open around the country at any given time. As an honest debtor, the last thing you want to do is appear to be fraudulent.
The Downside of Being Dishonest With Your Attorney
It is important to be honest with your attorney even prior to when you actually file for bankruptcy and could have your application determined to be fraudulent. The initial reason for this is that the relationship between a bankruptcy attorney and client requires mutual trust. Neither you nor your attorney is obligated to begin or stay in an attorney-client situation. With that in mind, if your bankruptcy attorney determines that the information you disclosed in your initial consultation or even in your interactions thereafter is deliberately inaccurate, your attorney may withdraw from representing you altogether as well as other potential consequences. It is best to be honest from the beginning.
We Offer the Honest Advice You Need
Even the most thorough and honest bankruptcy filings can face challenges when a borrower ends up leaning on advice that is inaccurate or insufficient. Many borrowers find it essential to have the assistance of a knowledgeable bankruptcy attorney who can help you make the right decisions and take the right actions in regard to your case. As the Plantation bankruptcy attorneys at Nowack & Olson, PLLC, you can depend on us to help you solve your debt problems and begin moving toward the fresh start you deserve. We can carefully review your case and help you decide whether pursuing bankruptcy may be a good option for you during a complimentary initial consultation.