Bankruptcy Abuse - Under All Circumstances

 

What is “Abuse Under All Circumstances”? 

There are several different kinds of abuse when filing a bankruptcy petition. First there’s the issue of you under-reporting your future income and then there’s the opposite – overstating your continuing expenses. They both result in the same result – you end up with more and your creditors end up with less. 

If the judge determines to his/her satisfaction that you haven’t been entirely honest or forthcoming, they can declare Abuse Under All Circumstances. The most common problem in this area are unreported assets or under-reported income. If you know that in the near future you’ll be coming into money or some valuable through inheritance and you choose to not include that on your income statement, when the judge finds out you’ll be in hot water. You may find your bankruptcy has been dropped or that your chapter 7 bankruptcy has been converted to a five year long chapter 13 deal that leaves all your debts for you to repay in full. If the judge determines to his/her satisfaction that you haven’t been entirely honest or forthcoming, they can declare Abuse Under All Circumstances.  

The most common problem in this area are unreported assets or under-reported income. If you know that in the near future you’ll be coming into money or some valuable through inheritance and you choose to not include that on your income statement, when the judge finds out you’ll be in hot water. You may find your bankruptcy has been dropped or that your chapter 7 bankruptcy has been converted to a five year long chapter 13 deal that leaves all your debts for you to repay in full.