So you’re still toying with the idea of hiding assets and not complying with the requirement for full disclosure in your bankruptcy filing (even after your Nassau Bankruptcy lawyer has warned you not to?)

While it may be temping to transfer an asset’s deed or title to mom, or hide the Harley in the garage and claim it was stolen, you’d better think again. As previously discussed (and as any reputable Nassau bankruptcy lawyer will tell you), the bankruptcy court can dismiss your case based on fraudulent disclosure (and search back as far as 365 days prior to your filing to search for suspicious lost or missing assets.) There is also the specter of criminal prosecution for fraud.

As Americans, we enjoy many protections under the shield of the U.S. Constitution, including protection from illegal search and seizure (under the 4th amendment). But … that protection only extends so far.

If the bankruptcy trustee believes you to be hiding property (or cash from an undisclosed sale of assets), the bankruptcy court has the authority to obtain an order allowing a search of your home (which includes breaking locks and doors.) The order is usually sought on an ex parte basis, meaning neither you nor your Nassau bankruptcy lawyer will be informed about the trustee’s attempt and subsequent search of your property and records.

Experienced Nassau bankruptcy lawyers have seen the courts issue their fair share of ex parte orders, but we also counsel our clients that as long as petitioners make a full and accurate disclosure of assets, the chances of having one’s residence or workplace searched is extremely slim.

Just remember:  A reputable Nassau bankruptcy lawyer will always seek to find balance – encouraging you to make a complete and full disclosure of your assets, while working with you to help you retain as much exempt property as allowed by law.

If you’ve decided to file for bankruptcy in Nassau County, you may feel a mixture of emotions:  anxiety, over what the process entails; relief that you are about to embark upon a fresh start; and probably some sadness at the thought of the many possessions you may be forced to relinquish.

And it’s that last emotion that can be the tipping point. Don’t let sadness, regret, or greed take you from the frying pan to the fire. While it may be tempting to try to shield or exclude assets from disclosure to the bankruptcy trustee, your attorney who will be filing your bankruptcy in Nassau County will tell you:  that idea is a very short-sighted and foolish choice.

Why? Because in addition to the possibility of your bankruptcy case being dismissed entirely if the court finds that you’ve hidden assets, there is also a likelihood of criminal prosecution for fraud. Reputable attorneys who routinely help petitioners file for bankruptcy in Nassau County will always caution you to be up front about your assets and disclose them fully.

But what should you do if you acquire real property or some other asset after you’ve commenced your initial filing and asset disclosure? You need to inform the attorney who’s handling your bankruptcy in Nassau County of the new asset(s) immediately, because there is a 10-day deadline for notifying the court.

And one last caveat – don’t even try to get ‘clever’ and toy with the idea of distributing assets, property or cash to friends or relatives prior to officially filing your petition for bankruptcy. While you might think those actions will go undetected, the courts are definitely on to this practice, and are alert to look for abuse of the legal system from petitioners who file for bankruptcy in Nassau County. The court can even demand reimbursement from your co-conspirators, and still hold you liable for creditor claims after your case is dismissed. 

If the thought of giving up assets leaves you with tinges of regret, remember that filing for bankruptcy is a chance at a fresh start. Don’t blow this legal opportunity at debt forgiveness by trying to hide assets. By working with an experienced attorney who is adept at helping people like you file for bankruptcy in Nassau County, you’ll be on the path to financial freedom in a few short months – without having to always look over your shoulder.

As you begin the bankruptcy petition process with your Nassau County bankruptcy attorney, you’ll be asked to file a statement of intention regarding property secured by liens (usually a car or a house.) In essence, you must decide whether you want to keep (and be obligated to pay for) the asset in question, or if you want to give it up.

Most debts are dischargeable under the federal bankruptcy code, so you can choose to relinquish the asset and have the outstanding debt become eligible for discharge. While this may be a prudent move for many types of secured assets, most people are reluctant to part with their personal vehicle because they rely on it for transportation to and from work.

One method that your Nassau County bankruptcy attorney may counsel you on is a Reaffirmation of Debt. This process can help you keep your personal vehicle during the bankruptcy process – but be warned: A Reaffirmation of Debt is a formal agreement that renews your legal obligation to be financially responsible the property in question. The renewed debt also becomes ineligible for discharge.

Reaffirming a debt also involves a few intricacies which your Nassau County bankruptcy attorney will explain to you in greater detail. For example, even if you and the lender agree to the terms of a reaffirmation, the bankruptcy judge can override it if he or she feels the obligation is not in your best long-term interest.

Additionally, even though you obligate yourself to this new contract once you sign it, most states give you a window of opportunity to cancel it if you later reconsider (usually 45 to 60 days, but again your Nassau County bankruptcy attorney will advise you about your particular situation.)

As a matter of routine, most Nassau County bankruptcy attorneys caution against committing to a Reaffirmation of Debt because it undermines the very protections you are seeking to receive by filing for relief. However, in the right circumstances, a Reaffirmation of Debt may be the best course of action for people who have a steady source of income and can commit to honoring an ongoing installment obligation.

It’s important to weigh all the pros and cons before undertaking a Reaffirmation of Debt. A reputable Nassau County bankruptcy attorney will help you weigh your options so you can decide if reaffirming a debt is the right path for you.