A recent Tampa bankruptcy case has led to federal prosecution for bankruptcy fraud and likely jail time for a wife who trusted her husband.  The Tampa Tribune reports that Joanne Cone is facing a possible five years in prison for conspiring with her husband to concel assets from the bankruptcy court.

Michael Cone, the former president of a road contracting company, has been sentenced to a fifteen year prison term for bankruptcy fraud.  His wife, Joanne, claims that she had minimal knowledge of her husband's business and that her signature on bankruptcy paperwork did not reflect an intent to defraud the bankruptcy court.

Whether or not you believe Mrs. Cone, let her experience serve as an important lesson.  If you sign your name to a bankruptcy petition you are asserting under oath and under penalty of fraud that the information contained therein is true.  As Mrs. Cone has discovered, it is much more difficult to later claim that you had no knowledge of your spouse's business.

What should you do if both you and your spouse need to file bankruptcy, but you have some misgivings about the truthfulness of your spouse's disclosures?

First, you should seek your own counsel.  Attorneys are not permitted to represent clients with conflicting interests, even if those clients are married.  Most consumer bankruptcy lawyers will speak with you at no charge.  At Clark and Washington, we are happy to schedule an office appointment at no charge.  If you are concerned that your spouse is lying on his/her petition, you may file your own petition that reflects your financial situation as you know it to be.

Read the Tribune story carefully.  Apparently, Mr. Cone had the opportunity to accept full responsibility and spare his wife a prison sentence.  He apparently believed in his innocence and lost at trial.  Now his wife is facing five years.

Situations and relationships change.   If you are sitting in a bankruptcy lawyers office, you need to do what is best for you.