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.