What would happen if someone were to lie on a Ch. 7 Bankruptcy form(s)

Hi @Collegestudent19, welcome to Fluther!

Lying to the court is not merely “considered” illegal. And Federal courts handle bankruptcy, not state courts. If the ethics don’t deter enough, keep in mind that Federal prosecutors have a lot more resources than state and local authorities.

I’m pretty sure they require names, birth dates and SS# of all people being claimed. You can’t claim your dog or your favorite ivy plant.

Fraud in Federal Court context may lead to “twenty years in jail and up to two hundred and fifty thousand dollars in fines”.
You know where they will be for a LONG time, by the by if you report the fraud you can collect 15% of the money.

In New Jersey part of the paperwork you must provide when filing bankruptcy is your two most recent income tax returns. I would imagine it would be a red flag to any attorney who sees an additional deduction like a person added.

You also must complete a credit counseling session with an approved nonprofit
budget and credit counseling agency. I would imagine the added person wouldn’t be on this form either unless you lied to the credit counselor.

Bankruptcy fraud can lead to the petition being dismissed and/or criminal prosecution. Bankruptcy fraud charges are investigated by the Internal Revenue Service and are then sent to the Department of Justice for the actual prosecution. Jail time is up to five years, significant fines and fees and restitution.

Is she a total idiot? I’m serious. Only a total idiot would even consider this idea for more than one second. You’re messing with a criminal record for the rest of your life. Because she can’t control her finances? Try keeping that well paying job with a conviction.

I would reprimand @Adirondackwannabe for being so blunt were s/he not totally right. This needs to be put bluntly (but only in regards to the filing, not about how she should run her life ;-)).

A Chapter 7 filing consists of document that are the equivalent of sworn testimony. This means that all statements must be true to the best of the filer’s knowledge. If she includes false information, especially knowingly, it is the equivalent of perjury, and could result in both criminal and civil penalties.

I’m a lawyer, and I’ve specialized in bankruptcy (although on the corporate restructuring level). I say that not because this is legal advice, or to back up my statement. I include the information only to discard it as completely irrelevant because whether I’m a lawyer doesn’t matter in answering this question. The fact that lying in a document submitted to the court is an incredibly bad idea is something that, as @Adirondackwannabe put it, really even a “total idiot” should know.

You don’t want to commit fraud in a Federal proceeding. the trustee could come and take away anything you own. The fruad would be sent to the U.S. Attorney for prosecution of bankruptcy crimes and you will go to prison. When you get out of prison you will be paying fines for the rest of your life. Don’t even think about it.

We live in a country that provides a bankruptcy system rather than just throwing people in debtors court. For someone to not be honest in a bankruptcy proceeding makes me angry and I would hope they would be caught every time.

This is my personal opinion—not legal advice.