Mandatory Disclosures in Bankruptcy

The bankruptcy process can be complex, and there are many important moving pieces to be mindful of. One of the most frequently talked about topics is mandatory disclosures in bankruptcy. What are they, and how do they affect you? Lerner and Rowe Law Group’s Arizona bankruptcy attorney team is here with the answers you seek.

What Are Mandatory Disclosures?

Mandatory disclosures in bankruptcy are sources of crucial information necessary to the bankruptcy process. In such disclosures, you will let your trustee know of relevant facts needed for your bankruptcy to be approved. Some things included in your mandatory disclosures include:

• Identifying information—You will need to put forth any information deemed necessary for identity verification, including full name and address. You will also need to state whether you’ve completed a credit counseling course. Further, will be required to hand your driver’s license (or other government issued photo identification) to the trustee along with your Social Security Card.
• Properties Under Ownership and Exempt—It is critical to clearly state the properties you own or have any interest in (regardless of location) and the properties you claim as exempt for the bankruptcy process.
• Income, Expenses, and Debts—These things help let the trustee and the courts know if you are financially eligible for bankruptcy. Keep precise track of where your money goes and to whom. You will have to provide proof of income for at least the six month period prior to filing bankruptcy.
• Codebtors, Contracts, and Leases—Knowing just how entangled your debts are with others is also an important factor. Irrespective of how much debt you are in, be honest about whom you owe money to and whom you made deals with.

Do not lie about anything you disclose to your bankruptcy trustee (this includes hiding assets)! Such professionals are skilled in spotting discrepancies, and if they believe you are willfully withholding the truth, they can let a bankruptcy judge know about it. If it’s proven that you did in fact lie, you will automatically be ineligible for bankruptcy, and you will be expected to pay back your debts to your creditors.

Additionally, you may even be prosecuted for perjury. The Arizona bankruptcy process only works if you are completely honest and transparent, so don’t risk further financial strain by not telling the truth. Don’t think that by hiding assets or lying on forms you are increasing your chances of getting your bankruptcy approved. In fact, the exact opposite is true: you will be ensuring your own downfall.

What If You Make a Mistake?

Sometimes, mistakes happen. Maybe you forgot to fill out a form, or maybe you accidentally forgot to disclose something significant about your financial situation to your trustee. Or, maybe your financial circumstances changed shortly after you already filed your disclosure forms. No matter the case, these things can be rectified.

As long as you did not intentionally withhold such information, your bankruptcy discharge cannot be denied or revoked on the grounds that you failed to report. However, it is your responsibility to make prompt and accurate corrections as soon as possible. Immediately inform your trustee of what occurred, and follow all instructions carefully. You may have to fill out new, blank forms with updated financial information.

When it comes to mandatory disclosures, a bankruptcy attorney from Lerner and Rowe Law Group can help you gather all the materials you need. While you aren’t required to hire an attorney to file bankruptcy, an attorney can make the process go much more smoothly.

Have Questions About Arizona Mandatory Disclosures in Bankruptcy?

Mandatory disclosures in bankruptcy are significant when it comes to the bankruptcy process. If you have questions about mandatory disclosures in bankruptcy, speak with a Lerner and Rowe Law Group attorney. 

Our office hours are Monday through Friday, 8:00 a.m. to 5:00 p.m. You can also call us anytime at 602-667-7777 or chat with us online via LiveChat or a contact form. We offer affordable payment plan options to ease your stress. Don’t wait; call us today!