Legal Question in Bankruptcy in Indiana

Verification of information and potential for fraud

I retained an attorney 03/2003 to file Chapter 7. Preliminary paperwork was completed but risk for exposure due to home equity delayed filing as we searched for a way to protect that asset. In the meantime I made a good faith effort to sell a 2nd vehicle to get out from under the payment.I listed the vehicle as sold (private sale), indicated name/address of purchaser & sale price (approx $6000). The sale fell through. My father paid the vehicle off as a gift to ease my financial burden. It's titled in my name. Now I'm ready to file. Will a title search be conducted? How far does the court go to verify the info provided? I am fully aware that this constitutes fraud. What could they do to me if I'm caught? My atty is unaware of the situation.


Asked on 12/02/03, 7:33 am

1 Answer from Attorneys

Mary Ann Wunder Wunder & Wunder

Re: Verification of information and potential for fraud

I doubt you really want to engage in fraud, but that is what you are suggesting you are will to do. You would be better off to put the correct information in your paperwork - even if the attorney is aggravated at having to make a last minute change. Speaking from experience as the attorney who has been "fooled" by the client, most clients admit to the trustee what they have done by answering a question wrong, then everyone is in trouble, the attorney looking stupid and the client having to come up with money to save an asset or file for a 13. If this process has taken very long, it is likely that the value of the vehicle has fallen and even if it pushes you over the limit trustees generally take less than 100% on the dollar. You risk someone blabbing and the trustee knowing about the situation before your hearing starts and a complaint filed to prevent you from being discharged as to any of the debts, as well as potential perjury and criminal prosecution. Think twice before being stupid. Attorneys can also be disbarred for assisting you, although you say he doesn't know, he'll take the fall too.

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Answered on 12/02/03, 9:02 am


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