Honesty in Bankruptcy
As a small business owner in the Boston area you must be scrupulously honest. This applies to all aspects of your business including bankruptcy. Being honest will serve you well. You will get better advice, it will help you with debt relief, avoid fines, and keep you out of jail.
When you meet with your bankruptcy attorney be honest about your debt, assets, and income. It is only with this knowledge that your attorney can accurately evaluate your case and steer you in the right direction. With the wrong information you could potentially file for the wrong type of bankruptcy or even file for bankruptcy when it isn't the right course of action for you, your business, and your finances.
Remember, when you file for bankruptcy you must submit financial statements reflecting your debt, assets, and income. If this information is inaccurate your discharge can be denied which will leave you vulnerable to your creditors and may interfere with future bankruptcy filings.
When you submit these documents, you do so under "penalty of perjury." This means that you can be prosecuted if you knowingly submitted the documents with inaccurate or incomplete information. Lying in bankruptcy court or committing bankruptcy fraud is usually a felony. A conviction of perjury in conjunction with a bankruptcy case can result in imprisonment for up to five years for each count. You can also be fined up to $250,000. There are many lasting adverse consequences for being convicted of a felony.
Bankruptcy is designed to give you and your business a fresh start. Be honest in all aspects of the bankruptcy process. This will allow you to reorganize your business and get debt relief as needed. Shoffner & Associates has extensive experience in small business law and bankruptcy. Contact them to determine the best course of action for you and your business and to guide you through the process.
With the right help, you are more likely to succeed. The attorneys at Shoffner & Associates will be happy to help you.
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Freya Allen Shoffner, Esquire