What is the importance of your signature on your petition?

When you file your bankruptcy petition, you must sign all the forms. A signature serves a variety of purposes within the bankruptcy process.

The United States Bankruptcy Court Eastern District of Texas explains your signature on the bankruptcy petition is an oath that provides the court with proof of several important things.

Your knowledge

The signature shows the court you understand the petition. You understand that you are filing bankruptcy and everything that entails. It also tells the court you know your finances are now under review by the court and that you must follow the rules of the court.

Your word

The signature also gives the court your word that everything in your petition is accurate and true. It is similar to swearing in court to tell the truth. It holds you accountable for anything inaccurate or intentional lies in the paperwork.

The impact

Your signature is a serious thing. It is a legal statement of its own. If you sign a petition and the court later determines there is a fraud situation, you can face very harsh penalties. Not only will the court dismiss your case without completing the bankruptcy process but also you could face fines and even criminal charges.

It is essential before signing your bankruptcy petition that you understand everything within it. You should always review the petition, even if your attorney has prepared it. There is always the potential for a mistake, and if you sign the petition containing incorrect information, the court will hold you responsible because it is your signature on the paperwork.