What can I do to protect myself from my partner's financial liabilities? 14 Answers as of February 01, 2012

DO NOT sign anything that is not true. Bankruptcy fraud is a serious crime.

Do not get involved with anything that could potentially be fraudulent. If what your partner wants you to do (signing the sublease agreement) is untrue do not do it. This could also subject you to 1099 income that could cause you to owe additional income taxes.

First, don't lie to the court. If he pays rent or subleases from you, then that is fine. If they aren't paying but just want you to say they are, that could get you in a lot of trouble.

It will not affect your credit and if he pays you rent then it is a true agreement. However, if you are just fabricating this document, technically you are committing fraud in federal court.

You can get a lawyer and be VERY concerned that this may not be good for you. In fact your question makes it sound like he is asking you to commit perjury, which could land you in prison for 5 years.

My question to you is "is it true?" Florida offers a lot of protection to people who file bankruptcy, so people who do not live there are often trying to finagle ways to file there. The problem is that to do that, it is necessary to live there. It sounds like he may be trying to downplay his ties to Massachusetts. Alternatively, he may be trying to document expenses to show to the FL Trustee. Whether those expenses are true or not is another issue. I am not comfortable with this question. The only advice that I am going to give is that you do not sign anything which is not 100% true. Bankruptcy fraud is a serious business, and it is not something you should involve yourself in. When you say "he is claiming" to have two subleases, I suspect that the "claims" are not true.

It sounds like a fraudulent representation to the Court and you cannot do it without problems.

Although you will not become part of his bankruptcy, I would suggest staying away from any arrangement with this person. His/her track record is less than impressive regarding payment of liabilities.

If you are not married and do not have joint accounts, there is nothing you really need to do to protect yourself. His debts are his and your debts are yours. You might want to have a partnership agreement but you don't need much. I don't believe it is a problem to do a lease or sublease with him as long as it is legal. I would not recommend you do something or create a legal document which is false to help him out.

Sounds risky and you need to find out why he wants you to do that, particularly if it is not true. You should consult with an attorney of your own choice first since he might be trying to get around issues in his case and your assistance in the scheme could become a problem for you. You should never sign anything that you don't understand and know all the risks involved.