Can I leave property out of my bankruptcy? 

No. All of your property (sometimes called your “assets” in a bankruptcy) has to be listed on your bankruptcy forms. 

It doesn’t matter that you got your TV as a gift, it doesn’t matter that your couch isn’t worth anything anymore after 5 kids; it is your property and all of your property must be disclosed on your bankruptcy forms. 

For a more detailed explanation of how this works, including guidance on how to determine the value of your property, check out the chapter on Property & Exemptions in our Bankruptcy Guide. 

What if I accidentally forget to list something, will I get in trouble? 

Not as long as you make sure to fix your mistake as soon as you realize it. The bankruptcy court protects the honest but unfortunate debtor. Thankfully, being forgetful doesn’t disqualify you from being honest. So, as long as you file amendments to your Schedules A/B and C promptly upon realizing your mistake, you shouldn’t get in any trouble. 

Intentionally leaving off property can lead to problems with… 

… the bankruptcy trustee. When the trustee discovers the hidden property, they can take the property from you and sell it for the benefit of your creditors. This is true even if the property would have been protected by an exemption if you had listed it. In other words, you risk losing property that is otherwise protected by leaving it off your forms.

… the bankruptcy court. Remember that you swear an oath that all of the information contained in your bankruptcy forms is true and correct. If you sign the form knowing that you left off an asset, you committed perjury, which is a crime. 

Let’s Summarize…

Everything you own is an asset and all assets must be listed on your bankruptcy forms. The value of your assets is based on their second-hand resale value - basically - how much you would get for the items at a yard sale or other sale venue appropriate for the type of asset you have. Purposefully leaving out an asset is not permitted.