Many people who file for bankruptcy wonder whether the bankruptcy trustee administering their bankruptcy can come and personally inspect their assets. While these types of inspections are relatively rare, the short answer to the question posed above is “yes.” Filing for bankruptcy requires a detailed accounting of your assets, and there are serious penalties for failing to provide a complete and accurate picture of your financial situation. Consequently, it is highly advisable for anyone who is considering filing for bankruptcy to retain an experienced Long Island bankruptcy lawyer.
What are some reasons that a bankruptcy trustee may request a search?
There are a number of reasons a bankruptcy trustee may determine that he or she needs to personally inspect your home. Among the more common reasons include:

• The trustee suspects that you are deliberately hiding assets
• The value, nature, or condition of your assets is unclear
• The trustee determines that he or she must protect your assets from loss in value or damage

If the bankruptcy trustee determines that an inspection is warranted, he or she may request your permission to conduct such a search or may obtain a court order. In the case that a search is conducted pursuant to a court order, the trustee will conduct the search with the assistance of the U.S. Marshall’s Service. A search conducted in this manner will likely occur without advance notice and may involve forcible entry into your home, safes, or lockboxes.
What are the penalties for providing incomplete or inaccurate information in a bankruptcy?
There are a number of potential penalties associated with bankruptcy fraud¹. All documents provided to the court are signed and submitted under penalty of perjury². In addition, at your bankruptcy hearing you are required to answer questions regarding your assets while under oath. Providing incomplete or inaccurate information may result in a denial of a bankruptcy discharge, or worse, criminal prosecution for bankruptcy fraud.
Contact a Long Island bankruptcy lawyer today to schedule a free consultation
Attorney Ronald D. Weiss has been helping the people of New York obtain a fresh start through bankruptcy since 1993. To schedule a free consultation with The Law Office of Ronald D. Weiss, P.C., call our office today at (631) 271-3737.
¹http://www.irs.gov/uac/Bankruptcy-Fraud-Criminal-Investigation-(CI)
²http://en.wikipedia.org/wiki/Perjury