Social Media + Your Bankruptcy = Trouble

If you are like millions of Americans across the country, social media is a part of your daily life. Whether it is FaceBook, Instagram, Twitter or one of the many other social networking websites, it is important to remember that what you post can be used against you…..even in your bankruptcy case!

It is common for people who have been using social media sites to feel comfortable posting all about their lives. In fact, adults are using technology and social networking sites as much, if not more, than teenagers. Posts range from detailed commentary to only pictures, but when it comes to your bankruptcy case, seemingly innocent posts can negatively impact you. Remember, your posts are typically open to the public, including bankruptcy trustees and your creditors.

Consider the following examples:

• When you file for bankruptcy protection, you are required to make a full financial disclosure. This includes listing everything you own. If you post a picture of a new vehicle or pictures from a vacation you just took, it can cause significant problems in your filing.
• A debtor must also disclose all sources of income, not just your salary. Thus, if you advertise or post information regarding your side-job or you have a store on eBay and you fail to disclose this source of income, your trustee and/or the creditors will have questions.
• Individuals in a bankruptcy are expected to live on a budget. In other words, you can only make necessary purchases and you are prohibited from buying luxury items while not paying your creditors in full. Therefore, any posts bragging about large purchases or trips can cause issues in your case.
• Chapter 7 Trustees earn their living by taking a commission on bankruptcy assets they are able to locate and liquidate. Satellite imagery or other mapping software may make a picture of your house and the cars parked out front available to the public! Trustees will be diligent in using the internet and other sources of public information to confirm that you have made full disclosure in your case.

The reality is that bankruptcy trustees do not spend their days scouring the internet to catch you in a lie. However, an angry creditor or one that took your filing personally just might. Therefore, the best policy is to be open and honest in making full financial disclosures in your bankruptcy filing and to post responsibly. Never post a comment or picture that you wouldn’t want the trustee or your creditors to see.

If you are interested in filing a personal bankruptcy, contact a knowledgeable bankruptcy lawyer at Nielsen Law Group today. You can schedule your initial consultation by calling (480) 888-7111 or submitting a web request here.