Filing a bankruptcy under the new law will take much more preparation than formerly required. It is very important that you begin this preparation immediately. Consumers with significant financial problems who delay seeking advice from an attorney are at substantial risk of being further impoverished by lawsuits and garnishments, or unworkable debt repayment plans. Without proper planning, it may become nearly impossible to get together sufficient funds to protect their rights through the bankruptcy process.
ALL INFORMATION NEEDED TO PREPARE YOUR BANKRUPTCY PAPERS MUST BE COMPLETE, ACCURATE, AND TRUTHFUL. The Court may audit (demand proof of) the information you provide regarding your case. Failure to provide the documents requested may result in the dismissal of your case. If you provide the court with information you know, or should know, is false, you may be subject to civil and/or criminal penalties in addition to the dismissal of your case. The new law requires bankruptcy attorneys to do "reasonable investigation" as to the truth of the information listed in your bankruptcy papers. This is a major reason why bankruptcies are so much more expensive than under the prior law.