Why You Must Disclose Everything to Your Trustee
Are you wondering how much information you need to provide to your bankruptcy trustee?
This article will explain why you should tell them everything and not keep anything a secret.
If you are thinking about filing for bankruptcy, then you are probably already viewing it as a fresh start.
It’s fair to say that this is exactly what it can be.
When you are discharged, you will, in many ways, be back to square one.
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But you will also be free from your debt.
To be discharged, you will need to give up your assets except for those that are considered exempt and complete a monthly payment.
This is the cost of being able to start fresh with your finances.
You should never try to hide things from your trustee throughout this process.
If there is undisclosed information then it could make things more complicated and cause you to be in bankruptcy for far longer than is necessary.
You could even face criminal charges and that is definitely something you want to avoid.
Here are some of the issues that you can run into if you fail to disclose information to your trustee during this process.
A Substantial Delay
It is possible that you have unpaid tax returns.
If that’s the case then it’s likely that the CRA will ask for your discharge to be delayed until these returns are completed.
This could be due to the fact that they are concealing levels of income that you might still have access too.
It’s just one example of how missing information can lead to a delay here.
A Larger Price
You might already think that you know how much the process of your bankruptcy is going to cost.
But don’t be so sure because this can be impacted by the surplus income that you will be required to pay.
You might think that telling your trustee that you have a lower income will lead to a lower surplus, however, we guarantee this won’t be the case.
You will need to file a statement of income.
If this is higher than you previously indicated, it will trigger a greater surplus then your trustee informed you about.
As such, it’s better to make sure that you are completely honest about how much you and your family make from the beginning.
Otherwise, there could be a nasty additional charge in your future.
Potentially, you could make an honest mistake when you are providing information to your trustee.
After all, bankruptcy is never going to be an easy process and it can cause a lot of stress.
We all make mistakes when we’re stressed.
When you notice the mistake, you should inform your trustee as quickly as possible.
They will ensure that you are able to take the right steps here to correct the situation.
Do you need more help gaining debt relief and proceeding towards a bankruptcy?
Contact us today or fill out an evaluation form and a friendly member of our team will provide all the information you need.