If I decide to file bankruptcy, will the lawyer know that I received unemployment benefits in the past year?

Question

They asked me if I was working. And i said yes, part time. Then they told me to bring six months of paystubs. Do they ask about unemployment?

Answer 1

I will say "yes" because the lawyer will ask you every question in the book and do some thorough checking on his/her own.  It would be my opinion not to lie about it because it will bite you in the butt in the long run.

Answer 2

If you don't disclose ALL of your income to your attorney before he or she files your bankruptcy petition, you are traveling down a road that you may not want to travel.

Whenever a person files bankruptcy, the Statement of Financial affairs has to include all income you've received for the past three years. Your Schedule I which is the schedule of your current income MUST be completed truthfully and accurately. The income that is reported on your Schedule I is also directly related to your Means Test. The Means Test determines which chapter of bankruptcy you can file.

If you purposely hide, omit, or fail to mention any income to your attorney and he or she files the petition on your behalf with the misinformation, bankruptcy fraud has just been committed.

With this said, let's examine the impact of your unemployment benefits. It is highly doubtful that the amount of your unemployment benefits meets your financial obligations and it is doubtful that your benefits put you too far over the poverty level in your state.