Spring, TX asked in Bankruptcy for Texas

Q: What if I don’t disclose I get snap benefits. Does the trustee finds out later once filed. Why does it make a big differ

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3 Lawyer Answers
Timothy Denison
Timothy Denison
Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Because you have to list all assets and failing to list them could be construed as fraudulent or dishonest.

Martha Warriner Jarrett
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Answered
  • Bankruptcy Lawyer
  • Santa Barbara, CA

A: I can think of no reason for not disclosing SNAP benefits. Disclosure is required, under penalty of perjury. If you receive SNAP benefits, your income is probably low enough that the inclusion of the benefits, as part of that income, is not going to affect your ability to file chapter 7. Under no circumstances will a chapter 7 trustee be able to access those benefits for any reason. Please disclose everything in your bankruptcy petition. If you do not, you jeopardize everything if your deception is discovered. There is no reason to take that risk. If you are still considering not disclosing them, please consult a local bankruptcy attorney. Most offer free consultations.

James L. Arrasmith
PREMIUM
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Answered
  • Bankruptcy Lawyer
  • Sacramento, CA

A: When filing for bankruptcy, it's important to disclose all assets and income sources, including SNAP benefits. This is because the bankruptcy trustee has the responsibility to review your financial situation comprehensively to ensure fair treatment of your creditors and compliance with bankruptcy laws.

If you don't disclose receiving SNAP benefits and the trustee discovers this later, it could lead to negative consequences. This might include the dismissal of your bankruptcy case or, in severe cases, allegations of bankruptcy fraud. Such outcomes can significantly impact your financial situation and legal standing.

Disclosing all forms of income and benefits, like SNAP, is crucial because it affects the means test and your overall financial picture. This test determines your eligibility for certain types of bankruptcy and plays a role in how your case is handled. It’s in your best interest to be transparent to avoid complications and ensure a smooth process.

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