I’m often asked, “Do I have to disclose that?”  The question arises when folks are trying to come up with a plausible way to conceal an asset that has special value either in money or otherwise.

The answer is always, “In bankruptcy, you better disclose all your assets to the Chapter 7 Trustee.”  The Bankruptcy Code requires the debtor to make a full and complete disclosure of all assets and all liabilities in the bankruptcy papers.  Coupled with that requirement is the requirement to disclose all transfers of your property in the last year.  One of the roles of the bankruptcy trustee is insure that the debtor discloses all of their assets.  The purpose of the system is to provide for an orderly and fair distribution of assets to the unsecured creditors.

Despite repeated admonitions to disclose all assets some folks try to trick the system.  Vicki Jean Fehrs is one of those people.

She filed her bankruptcy case in 2005 in Idaho but failed to make a full disclosure on her bankruptcy papers.  In fact, she concealed the fact that she transferred Mullan, Idaho property to her son.  This all worked pretty good for her.  It worked so good that she escaped detection until after she received her discharge.  She later sold the property (through her son) for $47,928 and kept the money.

Her joy was short lived, because the United States Trustee investigated the case and sought an indictment for contempt for willfully disobeying a lawful order of a bankruptcy court.  She’s now serving 5 years probation and was ordered to pay $47,927.95 in restitution.  She’s fortunate to have escaped jail time.

The moral to the story:  “In bankruptcy, you better disclose all your assets to the Chapter 7 Trustee.”

If you are considering bankruptcy as a tool to put you on the road to financial freedom, seek the advice of the experienced attorneys at Scott Law Group, PC.  In Tennessee the Knoxville bankruptcy attorneys at Scott Law Group, PC help individuals and businesses from Knoxville, Sevierville, Maryville and Jefferson City evaluate the options available during these difficult times.   Call 865-246-1050 to arrange for a free consultation.  Don’t go it alone.