It is important for everyone who is going through a bankruptcy to disclose everything during the process. There have been instances in which some people have gone to prison because they lied on the bankruptcy forms about their assets. Investigators for the bankruptcy court can use a variety of methods, including checking social media accounts.
Many people realize that there are some people who opt to embellish their lives on social media. Think about a while back when 50 Cent made the news for posting with what appeared to be massive amounts of cash. At that time, he was in the midst of a bankruptcy case. The judge wanted to know what was going on with the massive amount of cash. In the end, it came out that the cash was fake.
If you are a person who wants to portray a life that could be considered excessive, you have to think about what questions might come up as a part of the proceedings. It might be best to leave those posts off of social media or give a truthful explanation about what is going on in the picture.
People who are struggling with debt who don't have a lot of assets might want to file for Chapter 7 bankruptcy. This can be a difficult process because all of your finances come into consideration with this form of bankruptcy. If you are in this situation, it is important for you to be able to consider all of your options. Once you do this, you can determine if bankruptcy is the best option for you. An attorney can answer any questions you may have.
Source: The Wall Street Journal, "Everybody Lies on Social Media—Just Ask Bankruptcy Asset Hunters," Katy Stech, Dec. 26, 2016