In two of my past postings, one on February 28, 2011 and one on January 7, 2011 I discussed the downfalls and potential consequences for failing to disclose assets in your bankruptcy petition. Well, two Indianapolis debtors should have been reading my blog.
Christopher and Tiffany Welton were sentenced to house arrest and 36 months probation following their guilty plea to two counts of bankruptcy fraud.
The debtors filed a Bankruptcy Petition under Chapter 7 of the Bankruptcy Code. In their Schedule "B" under the jewelry section they listed one wedding ring valued at $1,000. No other pieces of jewelry were listed as an asset. At their meeting of creditors both debtors testified that they had owned jewelry in the past but had sold it all prior to filing the bankruptcy petition.
Two months after the petition was filed, and after the meeting of creditors, the debtors admitted that they had not disclosed all of their jewelry and had undervalued the listed wedding ring by $27,613. Contrary to their bankruptcy petition, and their testimony at the meeting of creditors under oath, the evidence established that they owned six pieces of jewelry in addition to the wedding ring that was listed in their schedules. The evidence established that the appraised value of the undisclosed jewelry was $61,749. The jewelry was turned over to the trustee and sold at auction for $17,400.
I can't say it enough; bankruptcy favors the honest debtor but can come down like the wrath of a Greek God on debtors who are dishonest. An experienced Santa Rosa bankruptcy lawyer can assess your situation and guide you in preparing an honest and accurate bankruptcy petition. When it comes to your bankruptcy schedules, there is no room for dishonesty or liberal valuations of your assets. The price can be too high.
The Law Offices of James V. Sansone is located in Santa Rosa, California and helps people file for bankruptcy relief under the United States Bankruptcy Code throughout Sonoma County, Mendocino County, and Lake County, including Santa Rosa, Petaluma, Cotati, Rohnert Park, Sebastopol, Healdsburg, Sonoma, Kenwood, Glen Ellen, Windsor, Bodega Bay, Ukiah, Willits, Clearlake, Lakeport, and Kelseyville.