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What would happen if someone were to lie on a Ch. 7 Bankruptcy form(s)

Asked by Collegestudent19 (20points) February 9th, 2011

A close family member of mine is planning on declaring bankruptcy in New Jersey, however she doesn’t make what someone would call a modest salary. Even though her debt ratio is 98%, she still may have to perform a “means test” because the money she makes pre-tax is more then the median household for 3 people in NJ. If she were to lie and say that a fourth person lived in her household then it would push the median up to 104k, making it so she wouldn’t have to take the “means” test. I could see how this could be considered illegal but has anyone ever contemplated on, or know someone that has done this? And if you know any advice in bankruptcy law in NJ it would be greatly appreciated!

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