Bankruptcy & Social Media

If you are like millions of other people and Facbook, Instagram or Twitter are a part of your daily routine, it is important to understand how social media can impact your personal bankruptcy case. Social media is no longer being used solely be teenagers. Adults and businesses (including your creditors) use networking sites to learn details about others. Thus, if you are considering filing a Chapter 7 or Chapter 13 bankruptcy, you should carefully consider how your posts that could be read by the trustee or your creditors could cause damage in your filing.

Below are a few examples of how your posts and pictures could negatively impact your ability to obtain relief from your debt in bankruptcy:

• All debtors are required under the law to make comprehensive financial disclosures. This includes submitting a list of everything you own. Thus, post a picture of the new motorcycle you just bought that was not listed in your bankruptcy pleadings can raise questions in your case.
• All debtors must also disclose every source of income that they have. This means that your side job of detailing cars, mowing lawns or selling crafts online must be disclosed. If your trustee sees your post advertising your services and you failed to disclose your part-time job in your case, it can cause problems.
• A debtor seeking to discharge debt is expected to live on a budget. You are not permitted to make unnecessary purchases while not paying each of your creditors in full. If you are posting pictures of your recent vacation to the Bahamas or discussing a recent shopping spree you just went on, your creditors and/or the trustee are going to be upset.

The above are just a few examples of the ways social media can impact your personal bankruptcy. Although trustees do not devote significant amounts of time scouring the Internet trying to find evidence that you are lying in your filing, an angry creditor might. It is better to err on the side of caution and to make complete financial disclosures in your bankruptcy and to think carefully before you post anything regarding your finances on social media sites.

At The Law Office of Diane Anderson, our lawyer has faced Chapter 7 bankruptcy. She understands the anxiety and fear that accompanies working through this process. But, after coming out on the other side, she started her own law firm and is living a life with less worry and strife. Contact us today to get the help and guidance you need in order to take control of your finances.