DH lied to the trustee-now what

[scammer]

It's really not a joke-DH and I have been married for 3 years now, I did not know about the debt he had until last year when he told me he needed to file for BK-we have 2 young kids and he always handled the finances.

We did not file together-he filed on his own-is he really going to go to jail for this? I dont work and depend on his income for our family support. I am very worried about this-should I file for divorce so I dont get in trouble too.

What does his sister do? Should she just tell the trustee she never received any money from DH-since she never did-that way she is not responsible for payment of anything-she does not even have any money-would this get her out of this?

no!!!!!, but they could question every little thing, be petty, and even try to dismiss the thing, although sending a letter that is a blatant lie, wow. That is scary to me.

[fellowpoorman]

Why do people do these things, WTF, is this real? I think not

[invest1choice]

I don't understand why, when your attorney saw the money to a family member on husbands list of where his money went .. Attorney did not advise him Before filing that money to family members as a gift can come back and the trustee can sue your family member for this money.. FYI Maybe husband would have changed mind about filing....

I would think Since your sister does not have the money...She can get the money from another family member or friend then YOU pay back AFTER BK ... As suggested earlier...

Going back might bring up a lot of other thoughts to the trustee like what else did HE LIE about ? and run a fine toothpick through..

thats my thought honestly I would have had a HEART ATTACK through this if I was in your husbands shoes but what is done is done and if you cannot find anyone to pay the trustee maybe the trustee will take payments from your sister, THAT you PAY AFTER the BK...is discharged.....

This is just a thought , It is a hard deal here...
I feel for you and your children as you had nothing to do with this ...
GOOD LUCK On whatever your husband decides...

[brokemommy]

Hey how about an update to this interesting situation?

[bkbiker]

Lying to the trustee or giving false information is very serious business; this is grounds for denial of discharge, if you case is denial of discharge your case does not end, the trustee can go after any assets you have and sell them. How-ever you are still in civil court not criminal court, the bankruptcy court can not sentence you to jail; they can recommend your case be turned over to the justice department for further review.

I like djk recommendation, it would be best if DH sent a new letter explaining his poor memory, does DH take any medication or have other problems that might contribute to this poor memory and bad penmanship that could be used as a excuse. Maybe all the emotional turmoil of bankruptcy just left you unable to think clearly. If not it may be best to just admit your stupidity and ask for leniency and promise never to do anything like this again.

I would doubt serious that this would be pursued in criminal court, no creditors were hurt and the amount seems small, the bankruptcy court does take into consideration the degree of sophistication in financial matters the debtor has.

Good luck worried 1971

[SinkingFast]

I don't understand why, when your attorney saw the money to a family member on husbands list of where his money went .. Attorney did not advise him Before filing that money to family members as a gift can come back and the trustee can sue your family member for this money.. FYI Maybe husband would have changed mind about filing....

The guy filed Pro Se, Invest. Guess he didn't know about Preferential Payments to Insiders.

The BK could be dismissed WITH Prejudice. If that happens, it's just like you filed successfully without the discharge of the debt. You cannot refile Ch 7 for 8 years. Hubby would have to file Ch 13 to get any sort of financial relief.

The best thing to do at this point is to stick to the original story. Scrounge up the funds, slip the money to Sis, and have Sis pay the Trustee.

If you can't do that, Hubby may well be screwed.

I don't think an "I did not accurately report what I did with the money" letter or explanation is gonna cut it at this point. The Trustee is already digging looking for loot. He/She wants MONEY and will not be satisfied with anything less. If he/she does not get MONEY, then the Trustee is gonna push to make Hubby's life miserable in so many ways. Probably to the extent of pushing for dismissal of the BK WITH prejudice.

[bkbiker]

Bring DH sister into this now becomes conspiracy to commit fraud, would you be digging yourself into a deeper hole?

Have you had the 341 meeting yet? If this comes up than, you will be under oath there.

On the other hand, sf has a good point, if this is just a family matter and can stay this way; perhaps any further damage to the chapter 7 case can come to pass. I would not want to be in sis shoes.

Good luck worried 1971 and please let us know if this is for real.

[edwards2]

Amen to not toying with the trustee. We had a 2004 Exam with the U.S. Trustee and I have to admit I was really nervous and at one point thought about not revealing the whole truth about something mainly because I was scared to. The one and only thing my erstwhile attorney said to do is NO MATTER WHAT tell the truth so we told her the whole unvarnished truth...every chapter and verse...Luckily our trustee told us she felt our pain and we had been through enough so she discharged our case. I think the tangled web is already tangled enough. I think I would scrounge up the funds too and give them to the sister to pay the trustee. If he changes his story again his credibility will be totally shot and the trustee in all likelihood would probably dismiss his case. Her thinking would be if he lied about that what else did he lie about? And filing pro se makes it even more difficult because you dont have legal representation. This is definitely one of those times when an attorney would be helpful. I am thankful we had one. Keep us posted. Whatever your husband does dont tell the trustee anything else he can't validate. They are already suspicious enough as it is.