Confused by ch 7 process

[davio2shoes]

What is the name of your state? WV
Ok Maybe its just me, but Im confused about the entire process..lol.
As I understand it you can file by yourself or with a lawyer.
Either the lawyer or yourself fills out the ch 7 bankruptcy forms...35+ pages worth.
You file and wait for a 341 meeting.
At this meeting they ask questions about your assests, debts etc. Things already stated in the bankruptcy papers. Plus they might ask you for clarification about something.
TYPICALLY the meeting lasts 10-15 minutes.
Then you wait 30-60 days for a decision about weither your debt will be discharged or not.
My question is...how do they know what you state is true???
NO Im NOT trying to lie..but how do THEY know Im not?
Everyone states you need to gather all your financial statements, deeds, papers, etc...but as far as I can tell you never show them to anyone.
I could state my house is worth 75,000 when its worth 100,000..thus giving me an extra 25,000 house exemption.
I could Not list cash on hand, jewlry or other items. Heck I could NOT list property or bank accounts!
Is THIS why theres a push for new bankruptcy law????
Secondly is this another reason why its good to have a lawyer? IE while an individual might be willing to lie...a lawyer would risk loosing their liscense and thus be far LESS likely to lie.
Or am I just completly confused...lol.

 

[bigun]

Unless your bk is complicated or involves really large numbers, the trustee will just give it a routine look.
Where people get caught is when creditors run asset searches and stuff is discovered. Banks an CC companies will look at past credit card transactions for signs of suspocious activity a few months prior to filing. They'll also look at DMV records, UCC filings, property tax rolls, etc. All things that are found in data bases online looking for some pattern of abuse.
Just try not and over think this stuff. BK is routine. Be honest and as accurate as possible. Be polite and cooperative and keep it routine.

 

[chris7]

Nothing to be confused about

Basically you got it all right. There really is nothing to be confused about. At the 341 meeting you swear an oath that all the information you have provided the court is true and correct, and if you are an honest person than it is. If you are not an honest person than it isn't and you may or may not be caught. Our trustee did go through all the financial paperwork we gave him and took it with him at the end of the meeting. I think if you have a lawyer the trustee will take your banruptcy schedules at face value a lot more than someone who filed pro se. Not completely sure why, but i know that people who file on their own get a lot more scrutiny.

 

[Ron1347]

If you have any of your creditors show up (we did), they will know more about you than you think, and can challenge certain things. Our Trustee also took our papers home with him, to more fully look into our claims. We used an Attorney. Our Trustee left no stone unturned.

 

[davio2shoes]

TY all!

So apparently SOME TIMES the trustee requires supporting evidence of deeds, bank accounts, perhaps even house appraisals; but often doesnt.
I guess that possibility keeps away most fraud.
Still I really wonder if this lack of required proof is helping power the demand for new legistation.
If so, we who are honost are getting nailed for the abuses of a few...abuses which the system lets get by..LOL.
Sounds like the government saying: lets punish the honost folk, cause we are to lax to catch the crooks!!
LOL.

 

[Ladynred]

Is THIS why theres a push for new bankruptcy law????

No, its because the credit card companies, like MBNA, have been shoveling money to the tune of $30 MILLION into Congressional coffers. They have a HUGE lobbying machine. MBNA was the FIFTH LARGEST CONTRIBUTOR to Bush's campaign -- so who do YOU think is going to benefit from this legislation ?? NOT US !!!!

You might want to read some of the things here:
www.debtslavery.org

In particular, you might want to read the dissenting House Democrats' 54 page position on this 'debt slavery' bankruptcy bill:

http://rawstory.com/exclusives/dissenting_views_bankruptcy_405.htm

So apparently SOME TIMES the trustee requires supporting evidence of deeds, bank accounts, perhaps even house appraisals; but often doesnt.

If you are filing pro se, you can almost guarantee that you WILL be asked for more documentation than someone who has a lawyer. People have been asked for 5 years of tax returns, a year's worth of bank statements, and much more. If you are represented by a lawyer, the lawyer generally will ask for all the suppporting documentation so its assumed the lawyer has verified, to some degree, that you're being honest.

When you sign the bankrutpcy forms, you are SWEARING that all the information is true and accurate under penalty of 5 years imprisonment and up to $500,000 in fines !