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A family member submitted a false monthly income statement. Knowingly. Are there any repercussions?

Posted from: Ontario

One Response to “bankruptcy”

A licensed trustee said...

If they knowingly submitted a false statement and have been caught the implications may be quite serious. It is likely the trustee involved will “oppose” their discharge – that means the bankuprt will have to appear in Court and explain their actions – then the Court gets to decide if they can beleive anything the person says… In most of thses cases the Court simply decides what they believe a “fair” income number is and assess penalties accordingly. In the worst case, a discharge from bankruptcy may be refused – which means the bankrupt is back where they started (only they can’t use bankruptcy laws to deal with their debts).