Free Consultation

Unreported income

What if someone is going thru a bankruptcy and makes cash on the side, and doesn’t report it? Is there a penalty for that? or can the bankruptcy person check bank accounts and spending habits?

Posted from: Saskatchewan

One Response to “Unreported income”

A licensed trustee said...

Unreported income is a serious offence – if your trustee discovers it before you decide to disclose it then the very least you can expect is an appearance in Court. You’ll get to explain to the Court why you should be released from bankruptcy since you didn’t follow the basic rules… In most cases, the Court will add at least another full year to your bankruptcy and they may simply arbitrarily decide how much they think you eanred without reporting and assess you penalties based on that number.

It really doesn’t make sense now does it?