Bankruptcy: Do I Need to Disclose All of My Assets?

Updating a blog post we brought you previously, “Real Housewives of New Jersey” star Teresa Giudice is suing her former bankruptcy attorney for $5 million, according to the New York Daily News. Picture of woman paying bills

The lawsuit comes after Giudice was sentenced to prison on bankruptcy charges. Giudice was sentenced earlier this year to 15 months in prison, while her husband Joe was sentenced to 41 months in prison for failing to disclose all assets during their bankruptcy case.

According to the News, in her lawsuit, Giudice claims that her former attorney James Kridel made mistakes in their original bankruptcy filing in 2010 and failed to amend the issues. She also claims that Kridel and his firm inadequately prepared the couple for bankruptcy.

After the bankruptcy filing, the couple was hit with federal charges when a trustee objected to the financial disclosure documents included. Kridel reportedly told People magazine that Giudice was not fully aware of her finances before filing for bankruptcy.

“I did not believe that Teresa was all that knowledgeable about any of the finances of her family until ultimately she became the breadwinner,” Kridel said, according to People. A judge reportedly told Giudice that she might have given her probation during sentencing if there were no factual errors on the financial disclosure forms in her filing.

Interestingly, the Associated Press reported during the couples’ sentencing that they submitted phony credit applications to get more than $5 million in mortgage and construction loans prior to the filing.

As this case shows, you need to disclose all assets and debts during a bankruptcy case, and be honest with your attorney about your finances.

Should I Talk to a Bankruptcy Attorney About My Financial Problems?

Keep in mind, you can face fraud charges if you knowingly fail to disclose assets during your bankruptcy filing. If you have large debts and numerous assets, trustees can easily detect dishonest information and report it to authorities for potential prosecution.

Even if you are worried about losing assets, you should speak to a bankruptcy attorney if you are struggling financially. There are many benefits to a bankruptcy filing: when you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay goes into effect that prevents collection attempts. The automatic stay also halts lawsuits, prevents wage garnishment and stops payment demands from collectors.

In some cases, you are able to keep property, like homes and vehicles, while discharging unsecured debts, such as medical bills and credit card debt.

If you live in the Washington DC and Maryland-area, and you are thinking about filing for bankruptcy, our attorney is here to help you. Put an end to your financial stress. We can assist you in overcoming the financial missteps that have left you reeling in debt.

Law Firm of Kevin D. Judd Maryland and Washington DC bankruptcy attorney

Judd’s Judgment: You may be able to discharge certain tax debts through bankruptcy if you have not been charged with tax evasion or fraud.

Source: http://www.nydailynews.com/entertainment/gossip/teresa-giudice-suing-lawyer-5-million-jail-time-article-1.2031732