If your bankruptcy schedules are filled out wrong, can you blame your lawyer for what is on them when you are charged with bankruptcy fraud?
Technically, the criminal charge will be perjury, but it is for filing fraudulent schedules.
That is, not listing an asset you have, answering one of the questions on the statement of affairs incorrectly, or another significant omission.
It would still be incorrect to list something you do not own as an asset, but that rarely happens, and would rarely have any effect on the bankruptcy case.
Hiding assets damages the creditors who might get some recovery from those assets, and, deceives the court as to your real financial condition.
Misrepresentations on your bankruptcy schedules can also lead to denial of your bankruptcy discharge, meaning you would still owe all of your creditors.
Fraud by creditors, well, that is another issue.
Sure, but you will be the one with the jail sentence.
Bankruptcy cases are filed electronically, so the copy on record with the court is not the one that has the “wet”, or ink, signature of the person filing.
In Detroit bankruptcy court, all debtors are sworn in and asked to authenticate their original signature on the papers they did sign.
Peter Pocklington, owner of the Edmonton Oilers when they were winning Stanley Cups, and still hated there for trading Wayne Gretzky to the L.A. Kings.
Though he plead guilty to perjury for filing fraudulent bankruptcy schedules, he tells the press, hey, I just signed the papers, my lawyer left out those bank accounts and storage facilities that were not on my bankruptcy schedules.
You would think this guy would read something he was swearing to under penalty of perjury before signing it, but, he says he did not.
Guilty of bankruptcy fraud anyway.
Do not sign anything unless you have read it.
Thoroughly and completely.
Everybody blames his lawyer, oldest trick in the book.
Now, I am not saying lawyers are perfect, but if you have one telling you to sign bankruptcy papers that leave out something you told him, better get a second opinion before you sign.
Bankruptcy Fraud: Blame My Lawyer?
Bankruptcy Fraud: Blame My Lawyer?
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