What happens if you don't tell your lawyer you were suing a car insurance company when you filed for bankruptcy?

Answer 1

The bankruptcy would be subject to dismissal with or w/o prejudice. And there is a good possibility that the petitioner could be charged with a fraudulent filing (which is a federal felony). In the case charges are brought, the attorney would have to make his or her own decision about whether to drop the client (a wise choice) or perhaps the option of defending said client in federal court. You are in a position where you may not have been "honest" about your assets. A possible "gain" as regards compensation in a settlement is not the same thing as holding a winning lottery ticket and not saying anything, but your creditors could make a claim for fraud after the fact if they find out. There are real risks here. You would be foolish not to check with another attorney on what is required and what is not as regards a possible settlement. This can usually be done at little or no cost to you as a number of lawyers will waive a fee or have reduced rates for an initial consultation. A mistake here could be extremely expensive in the long run.