Bankruptcy is said to be a system that exists so that, “the honest debtor may have a fresh start.” It is, therefore, a fundamental reflection of our national identity as a forgiving and caring people. But this extraordinary remedy is reserved for the honest.
This seems odd to many people. To them being honest would mean paying your debts on time and in full. And, in fact, that is honest. The Bankruptcy Code exists, and has existed for over 200 years, because it is a known fact that bad luck, bad judgement, and natural forces often conspire to make that perfect performance version of honesty impossible to attain.
Therefore, the Bankruptcy Code has only one overriding rule, you must be open and honest with the Court. The penalties for perjury and non-disclosure may range from costly review to denial of discharge and imprisonment. Honesty really is the best policy.
This article is written by an attorney at Wyatt & Mirabella, PC. Always consult an attorney before making any legal decisions. To make an appointment today for a free consultation, please click here to contact us.