Social Media and Personal Bankruptcy: What Do You Need to Know?

It might not sound immediately obvious that your social media activity could impact your personal bankruptcy case. However, it is important to think about the ways in which your image and your lifestyle are developed on sites like Facebook and Twitter, and to take care about how you present yourself when you are planning to file for bankruptcy. Specifically, when you file for consumer bankruptcy in Illinois, you will need to give the court information about your finances. If you fail to mention certain assets, you could be accused of bankruptcy fraud. If you are accused of bankruptcy fraud, not only can you risk losing the ability to seek a bankruptcy discharge, but you could also be charged with criminal offenses.
We will say more about how you should be careful on social media to ensure that your profiles do not negatively affect your bankruptcy. In the meantime, if you have questions about filing for consumer bankruptcy, you should speak with an Oak Park bankruptcy attorney.
Completing a Schedule of Assets and Liabilities When You File for Bankruptcy.
When you file for Chapter 7 bankruptcy, according to the U.S. Courts, you will need to file schedules of assets and liabilities, as well as a statement of financial affairs. What needs to go into these documents? The schedule of assets and liabilities needs to clarify any real property you own, as well as any personal property and property that you are claiming as exempt. You cannot leave out any assets (or liabilities) when you are filling out these required documents.
To be clear, you must provide the bankruptcy court with a full and complete listing of your assets, liabilities, and your financial affairs. This means listing every asset you own, and making clear when such assets are exempt. How can social media play a role in damaging your bankruptcy case? In short, if you fail to list an item you own, or if you are not honest in your statement of financial affairs, your social media accounts might provide evidence that could end up being used against you.
Popularity and Ubiquity of Social Media
You might think that your social media posts are private—especially when you use privacy settings—but the truth is, a lot of information that you post on Facebook and Twitter may be fair game when you file for bankruptcy. According to recent studies conducted by the Pew Research Center, about 70% of Americans currently use social media in some capacity. While young adults were the earliest users of social media sites, older adults have begun to post to sites such as Twitter, Instagram, and Facebook in recent years. 34% of people aged 65 and older use social media, and 64% of Americans between the ages of 50-64 use social media sites in some capacity. The most popular are Facebook, Pinterest, Instagram, LinkedIn, and Twitter.
If you are filing for bankruptcy, you should know that a bankruptcy trustee may browse your social media sites in order to look for any assets you might have failed to list on your schedule of assets and liabilities, or any signs that you have additional income that you did not report on a statement of financial affairs. For instance, of you are filing for bankruptcy and also taking a luxurious vacation, images from your trip may raise concerns with the bankruptcy trustee.
Contact an Oak Park Bankruptcy Lawyer
When you are thinking about filing for consumer bankruptcy, it is important to seek advice from an Oak Park bankruptcy lawyer. An advocate at the Emerson Law Firm can speak with you today about your case. Contact us for more information.
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