perjury - joke or 4-real??

I'm in Calif., trying to collect on attorney's fees awarded in court last year. the "debtor" filed for chap. 7 just days after receiving the wage garnishment order in Nov.

Unforunately, I missed the creditors meeting, but have contacted the trustee in the case. I asked him if the debtor had listed her rental property or her paid-off Corvette as an asset. He looked up the file and said there was no such listing, only the one property where she lives. says it's a "no assets" case.

well, now the trustee has copies of the property's loan and tax info. with the debtor's name listed as owner. i didn't not have any paperwork proof of ownership of the corvette -- but it sits in her driveway.

when i asked trustee why they didn't run a basic property ownership check at the assesor's office, he told me that people who file for bankruptcy sign an "under penalty of perjury" clause that the info they provide is true. like no one ever lies about their assets when they are trying to escape debt!

well, once he sees this paperwork on the second property, will they really punish the debtor for perjury? if i would have known of the date of the creditors meeting (my lawyer got the notice and did not inform me in time of the date), i would have brought this up myself and alleged fraud.

will this act of fraud at least delay the discharge date? could it screw up the bankruptcy filing? if i'm not getting payment, i want at least vengence!

What he told you is correct -- they don't go out and investigate debtors unless there's some indication of fraud.

However, in situations like this, where you have provided proof that the debtor didn't list all assets, the debtor is likely to be in "big, fat, hairy trouble," the legal term of art here. :-)

If the trustee finds out that what you say is true, then there are several possible outcomes.

One is the the trustee finds out that the property is not titled to the person and hasn't been for some time and that the BK can proceed according to plan.

Another is that it is found to be an "asset" case, and the debtor's non-exempt assets are seized and distributed to creditors.

Another is that the case is dismissed, and you are then free to go after what this person owes you.

Another is that the FBI is notified and pursues the debtor. Bankruptcy fraud is a federal crime, hence the official legal term "big, fat, hairy trouble."

Thanks for the thoughtful reply, dorenephilpot -- The optimist in me will hope for the "big, fat, hairy trouble" -- love your legal lingo!! -- option as well as a dismissal of bankruptcy due to fraud. Then, we'll go after the wage garnishment again.

Of course, the realist in me will not be holding my breath for fear of turning a bright shade of purple and keeling over dead!

The courts have jaded me beyond belief ... thanks again for your reply.

You're welcome. Good luck to you....