Thread: lying about your parent as a creditor?

Just want to know that if you file for personal bankruptcy and submit all creditors except your mother that lend you alot of money to start a business, is this legal in canada and if you get caught what can happen to this person?

The person that filed for personal bankruptcy took this loan from his mother and signed a promissory note along with another family member but never told the family member that he filed for bankruptcy.

bottom line, can you leave out a parent that is a creditor to protect them and if you get caught what happens next?

thanks

You said Canada, but in the US, that is bankruptcy fraud. When you file a bankruptcy petition in any civilized country (Canada included) you sign the BK petition under penalty of perjury.

Also, one effect of the failure to list a creditor in the US is that you do not receive a discharge with respect to that creditor, but it doesn't sound like you care about that very much...

A lender who takes an assignment of collateral has a claim on the borrower's assets, whereas a lender who lends on the strength of a borrower's character can look only to the borrower's future income.

That is a bankruptcy fraud from what i perceive from it. You should consult someone having knowledge in this field.

It is fraud and if caught you may get the opportunity to modify, or the bankruptcy will be voided. It is pretty common for people to not disclose family loans.

www.bidsfromlawyers.com

Bankruptcy petitions are signed under penalty of perjury. Intentionally not listing a creditor could be prosecuted as a bankruptcy crime. More important for your situation, however, is that creditors who do not receive notice are usually not discharged.

Bankruptcy Attorney Houston