Legal Question in Bankruptcy in Minnesota

Before I filed for bankruptcy, I gave my parents about $1500 over the last 2 years prior to filing. It was not a loan, but rather a gift. (I did this even though I was in debt. I helped them pay for their mortgage and household bills so they could survive). One lawyer told me I should not disclose this information to the trustee. Another lawyer told me that it was okay and that the trustee would understand. well, I was in front of the trustee for the creditors hearing and as soon as I told the trustee that, "yes" I gave my parents money, he did not look happy and began to further question me. Now, why would an attorney tell me to disclose that information if it would only hurt me? I'm still waiting to hear if I got discharged or not.


Asked on 6/28/10, 12:23 pm

1 Answer from Attorneys
David Kelly-952-544-6356 Kelly Law Office

The lawyer who told you to disclose was right.

There's a question on the bankruptcy petition that asks whether you gave anybody a gift of more than $100 within the year before filing. You put your answer in writing and sign it under penalty of perjury.

Then at the hearing you are under oath. You are required to answer the questions and provide the information. Bankruptcy fraud is a felony - jail time is possible. What I hear is that at least a couple of people from MN wind up in jail for bankruptcy fraud every year. Right now Denny Hecker is a candidate, for example. If you don't want to join him you answer the question truthfully. Not disclosing is not an option.

So why would a lawyer tell you that? So you don't go to jail. You were well-advised.

This is for general information purposes and does not create an attorney-client relationship. It is not legal advice. You should consult your own attorney about the details of the case.

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Answered on 6/28/10, 4:05 pm


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