I would say they just did. Here's the calculation - 1. How much money will you make in the next five years? 2. Can you afford to lose that much money when you go to jail for five years for lying under oath on a federal petition? If you file bankruptcy, you don't hide anything. And you don't ask a lawyer to risk jail by helping you lie. If you file bankruptcy, you tell the truth.

Answer Applies to: New Jersey
Replied: 1/16/2012

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They only know about what you disclose to them. However, the majority of the time, you can fully disclose your income and still qualify without committing fraud on the courts by not disclosing. The federal courts do not coordinate with the IRS, they just want to see that you are disclosing honestly.

Answer Applies to: New York
Replied: 1/3/2012

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It is very unlikely anyone will care. Your attorney will have to file a statement that you do not receive pay stubs.

Answer Applies to: Colorado
Replied: 1/3/2012

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To obtain a discharge in bankruptcy you must reveal the following without exceptions or omissions: - How much $$ you make in total - How much you owe to creditors - The identity of all your creditors - Your real and personal property Failure to reveal any of the above is *bankruptcy fraud* and will result in dismissal of your case as well as sanctions by the Court. Your employer will understand. If your employer does not understand, you must choose between the employer's peace of mind and your own. You know which is more important so conduct yourself accordingly.

Answer Applies to: Illinois
Replied: 1/2/2012

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You can't lie in a bankruptcy petition; it's a federal crime. You should consult an attorney and try to figure out if you still qualify for Chapter 7 even with your unreported income. You can list your unreported income as your gross with an estimate for what you will pay as your income tax just like any other 1099 employee or self employed person. If your unreported income is too high for chapter 7, you can still consider a chapter 13 filing if your income is reliable enough.

Answer Applies to: Illinois
Replied: 1/2/2012

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Yes. In a bankruptcy you are required to truthfully report all of your income. The bankruptcy court will not care that you have not paid tax on the money, the court merely wants to know how much you made in the six months prior to filing. However, you may have a problem with proving the amount if you have no paperwork showing how much you have been paid. An attorney can help you work out all the issues, but at the end of the day, you will be able to file bankruptcy and discharge your debts. You also need to talk with the attorney about your employment situation and what issues that might raise for you.

Answer Applies to: Colorado
Replied: 12/30/2011

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Yes. You are required to list your income when you file bankruptcy.

Answer Applies to: North Carolina
Replied: 12/30/2011

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You must disclose all money earned and received in the 6 months prior to your filing bankruptcy. It is bankruptcy fraud to not made this disclosure. I have not seen any ill consequences from my clients making this disclosure.

Answer Applies to: California
Replied: 12/30/2011

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When you file your bankruptcy, you must disclose your income- under the table or not. Many people are in your situation. It is not illegal to be a contract employee who is paid cash. (whether you should be reporting your income to the IRS and paying taxes on it is a separate issue). You would simply list your actual income as "self employment income" at however much it is per month on Schedule I and then separately list the amounts received in the 6 months prior to filing on the means test. For proof of income, you can work up a brief profit and loss sheet showing amounts received and any expenses you had. The question of whether or not your employer pays taxes does not arise. Additionally, when you file bankruptcy you are required to have filed your taxes for the last four years and provide copies of those as well. Of course, you can report your income properly on your annual taxes in a similar manner. I am neither an accountant nor a tax attorney so I cannot speak to this more specifically other than to generally advise you to seek out advice on properly disclosing your income to the IRS.

Answer Applies to: Wisconsin
Replied: 12/30/2011

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Not really we can disclose as income and it will not effect

Answer Applies to: Florida
Replied: 12/29/2011

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Yes they will. Your failure to disclose your crime is a felony, perjury. It will result in denial of your bankruptcy. And it will land you in federal prison for 5 years, with a $250,000 fine. The US Trustee, who is part of the Justice Department, may also share information with the IRS, and that may result in additional penalties Stop evading your taxes, fess up to your criminal activity, and amend your taxes before you file. Then see a lawyer and report every dollar in your bankruptcy case.

Answer Applies to: Georgia
Replied: 12/29/2011

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To fail to pay taxes and to fail to disclose income and to submit a false IRS return are all fraud. To file a fraudulent bankruptcy petition, no, I would not do that if I were you. That is fraud in a federal filing. There are traces and signs and when it comes out which is not good.

Answer Applies to: Florida
Replied: 12/29/2011

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When you file a bankruptcy case, you are required to declare all sources of income under oath. Hiding income in a bankruptcy case is fraud.

Answer Applies to: Maryland
Replied: 12/29/2011

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When you file bankruptcy it requires full disclosure of your income. Failure to do so is perjury and also subjects you to certain bankruptcy crimes.

Answer Applies to: California
Replied: 12/29/2011

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You can still file but you should disclose your income.

Answer Applies to: California
Replied: 12/29/2011

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One of the forms that you would need to fill out is a Schedule I which shows your income, the Statement Of Financial Affairs where you must list your income for the past two years, and a Form B22 which is the means test where you have to list your income for the past six months. You also have to supply your tax return for the last year for the bankruptcy trustee. You sign your bankruptcy papers under penalty of perjury that they are correct, so if you put in false information on the Schedule I, the Statement Of Financial Affairs or the Form B22 (understating your actual income) you have committed perjury and can be fined $500,000 and face up to 5 years in federal prison. If you put the correct information in your bankruptcy papers and your tax returns show less income, you also signed your tax returns under penalty of perjury, and again face fines and possible prison time for tax evasion.

Answer Applies to: California
Replied: 12/29/2011

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Yes, if you file for bankruptcy you will have to disclosure your income. You will also have to provide tax returns and if your income is not disclosed on your tax returns, this will demonstrate that you committed tax fraud.

Answer Applies to: Colorado
Replied: 12/29/2011

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Yes, you must disclose all income when you file for bankruptcy, even if you're paid "under the table".

Answer Applies to: Illinois
Replied: 12/29/2011

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You must disclose all income you receive.

Answer Applies to: California
Replied: 12/29/2011

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