How can a trustee find out about a bank account that is closed before filing bankruptcy? 20 Answers as of July 30, 2011

If someone closes a bank account before filing bankruptcy but never reports that closed bank account, can a trustee find out? And how if it was never listed?

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Breckenridge and Walton
Breckenridge and Walton | Alan D. Walton
You are required to list it. Are you asking "if I committed bankruptcy fraud, how can they find out"? Not interested in advising you on how to get away with a crime.
Answer Applies to: Michigan
Replied: 7/22/2011
Tucker Legal Clinic
Tucker Legal Clinic | Samuel Tucker
You have to be forthright with the Court and Trustee in all financial information. You would have to disclose this if you honestly answer all questions on the petition.
Answer Applies to: Mississippi
Replied: 7/20/2011
Engberg Law Office
Engberg Law Office | Harry A. Engberg
Normally the trustee finds out about these things because someone tells them.
Answer Applies to: South Dakota
Replied: 7/15/2011
Law Office of Dennis Jay Sargent Jr, PLLC
Law Office of Dennis Jay Sargent Jr, PLLC | Dennis J Sargent Jr.
Why wouldn't you want to disclose the existence of the account. The trustee has the ability to find out a lot of information in this digital age. Why would you want to risk being dismissed from bankruptcy and subject to potential legal action? Honesty and full disclosure is the cornerstone of bankruptcy. Individuals that intentionally hide assets can be subject to criminal penalties, why would you risk it.
Answer Applies to: North Carolina
Replied: 7/15/2011
Colorado Legal Solutions
Colorado Legal Solutions | Stephen Harkess
The trustee will find out because you are required to disclose it. If you don't disclose it, you have committed a crime and can go to prison. There are several ways a trustee might find out and there is also a chance they will never find out. The question is - how much are you willing to risk? When you are sitting in prison, it will not matter to you how the trustee found out.
Answer Applies to: Colorado
Replied: 7/15/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    That's a very good way to land in jail. A person who does that could be fined and spend 5 years in prison, and see their discharge denied. Many Trustees run various records checks on debtors and do catch omissions. Perjury, and that is what this is, is taken very seriously. Do not make the mistake of doing this. You will risk having the government feed you behind bars for years. And you will still owe your debts. (And it's a really stupid omission, because most times if it was reported, it wouldn't affect most cases).
    Answer Applies to: Georgia
    Replied: 7/15/2011
    Eric J. Benzer, Attorney at Law
    Eric J. Benzer, Attorney at Law | Eric Benzer
    Because you have a duty to be honest and forthcoming about everything...
    Answer Applies to: Maryland
    Replied: 7/15/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    More to the point - bankruptcy statements and schedules are signed under penalty of perjury. So the question should not be what are the chances I will get caught, the question is why would you not tell the truth, as bankruptcy is for honest debtors to get a fresh start.
    Answer Applies to: California
    Replied: 7/15/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Filing bankruptcy requires full disclosure. Open and closed bank accounts must be listed in schedule B and the statement of financial affair. Trustees subscribe to services that find out about accounts that are not listed. Not listing these and other required disclosures could jeopardize your right to a discharge.
    Answer Applies to: California
    Replied: 7/15/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    Never underestimate the trustee. It is the debtors job to be absolutely honest on their bankruptcy schedules. I can not ethically give anyone advice on how to commit bankruptcy fraud.
    Answer Applies to: California
    Replied: 7/15/2011
    The Port Law Firm
    The Port Law Firm | Edward Port
    You are required to list all bank accounts (financial Accounts) closed within one year of the bankruptcy filing. A trustee normally asks at your court appearance if the schedules are true and accurate. The answer is given under oath. If you do not answer truthfully, then you could be subject to a denial of discharge. Sincerely, Edward N. Port DISCLAIMER The information in this reply does not constitute legal advice and should not be relied upon for any bankruptcy planning purposes. Bankruptcy planning is necessarily very circumstance-specific and therefore the reply is only intended to educate. Additionally, the information given in this reply is not meant to be a substitute for legal representation. You should consult with a local attorney regarding your suitability for the information stated herein under your local laws. The Port Law Firm, PA shall not be considered your attorneys until a fully-executed client retainer agreement is executed. Further, any tax consequences that may incur in the implementation of the strategies herein should be reviewed by an independent professional tax advisor. Nothing in this reply should be construed to be any advertisement for legal services directed to a state wherein The Port Law Firm, PA is not admitted to practice. Nothing in this reply is any substitute for the services of a licensed attorney in the relevant jurisdiction. The Port Law Firm, PA does not practice in any jurisdiction unless one of its attorneys has been admitted to practice there, or an attorney of the firm has been properly admitted pro hac vice according to the local court rules of that state.
    Answer Applies to: Florida
    Replied: 7/15/2011
    Law Offices of Alexzander C. J. Adams, P.C.
    Law Offices of Alexzander C. J. Adams, P.C. | Alexzander Adams
    It should be listed in the debtor's petition. If it is not, the debtor should amend the petition. Intentionally not disclosing the account is grounds for dismissal of the case.
    Answer Applies to: Oregon
    Replied: 7/15/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    The trustees have access to a great deal of information. The idea is for the debtor to make full disclosure. There is a question about closed financial accounts where you can disclose. Lying can cause your discharge to be denied and can bring you to a new residence in Federal prison.
    Answer Applies to: Virginia
    Replied: 7/15/2011
    Dan Shay Law
    Dan Shay Law | Daniel Shay
    The US Trustee is part of the Department of Justice. If they suspect something, they can get almost any info they want.
    Answer Applies to: California
    Replied: 7/15/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Interrogation under oath. Don't lie to the court. It's dangerous.
    Answer Applies to: California
    Replied: 7/15/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Yes they can find out about the bank account. They have programs that look back several years at various types of assets, bank accounts, etc.
    Answer Applies to: Michigan
    Replied: 7/15/2011
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