P is for Prison or Why Not to Hide Assets from the Bankrutpcy Court

General bk | 18. Dec, 2012 by | 3 Comments

Former Baseball Star Lenny Dykstra was sentenced to 6.5 months in Federal prison for bankruptcy fraud.

What did he do to merit a prison sentence? He destroyed or sold off 400k worth of property without Court permission. Upon filing a bankruptcy petition, EVERYTHING you own or have an interest in becomes property of the bankruptcy estate. Selling or otherwise disposing of assets without court approval can lead to all kinds of problems, including possible criminal charges.

“I don’t think I’m a bad person,” said Dykstra, who was in handcuffs and wearing a white prison-issued jumpsuit. “I made some bad decisions.”

For someone who fancied himself as a financial adviser and entrepreneur, he should have listened more to his bankruptcy attorney.

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