Can My Chapter 7 Bankruptcy Be Denied If I Don't List All Of My Property, Or If I Make False Statements In My Paperwork?

Yes. If you file bankruptcy, you are signing all of the legal documents, including the Petition, Schedules, and Statement of Affairs, under penalty of perjury. If you knowingly make false statements to the Bankruptcy Court, Section 727 of the Bankruptcy Code provides that your bankruptcy discharge can be denied.

You must list all property, all rights to property such as possible claims or lawsuits against someone else, all inheritances, as well as all transfers of property that you made in the two years before filing bankruptcy. A Manvel couple was recently denied their discharge by the U.S. Bankruptcy Court in Galveston, Texas.

If you lie to the Court, and you're caught, not only can your bankruptcy discharge be denied, but you can be prosecuted under federal criminal law for perjury and bankruptcy fraud.

So don't lie to the bankruptcy court, or you could get in much worse trouble than just owing a lot of debt.

J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization