When getting it wrong under oath becomes a criminal issue
When someone enters bankruptcy, the expectation is very clear. Full honesty. Full transparency.
Not just generally, but formally, under oath.
One of the most serious issues that can arise in this process is perjury, governed by the Perjury Act 1911. This applies where a person makes a statement under oath that they know is false, or do not genuinely believe to be true. This is not just a technical breach. It is a criminal offence.
Over the years, I have seen situations where individuals, often under pressure, have tried to “adjust” or simplify their position when giving evidence or completing sworn documents.
That is where the real risk sits.
Where perjury can arise in bankruptcy
In bankruptcy, there are several key stages where statements are made under oath or formal declaration.
These include:
- Statement of Affairs, setting out assets, liabilities and financial history
- Public examinations, where the individual is questioned under oath
- Private examinations, conducted by the Official Receiver or Trustee
- Affidavits and court documents, submitted during proceedings
In each of these situations, the expectation is the same.
The information provided must be accurate, complete, and truthful.
For perjury to arise, the statement must be material to the proceedings and made knowingly, or without a genuine belief that it is true.
Why this is taken so seriously
The entire bankruptcy process relies on accurate information. If the Official Receiver or Trustee cannot rely on what is being said, the process breaks down very quickly.
This is why statements are tested carefully.
Information is cross checked against:
- Bank records
- Property ownership
- Third party information
- Historic transactions
- Other documents already provided
Where inconsistencies appear, they are followed up. And where it becomes clear that something has been deliberately misstated, the matter can escalate.
This is particularly the case where there are complex financial arrangements, overseas assets, or significant transactions prior to bankruptcy.
What can happen if false statements are made
The consequences of perjury are serious.
They can include:
- Criminal prosecution, with potential imprisonment of up to 7 years and or a fine
- Bankruptcy Restrictions Orders or Undertakings, extending restrictions for up to 15 years
- Ongoing scrutiny of financial affairs, including further investigation into related matters
- Reputational damage, which can be long lasting and difficult to recover from
Once credibility is lost, it is very difficult to rebuild.
That often has a wider impact on how the entire case is dealt with.
A practical point that is often overlooked
Not every issue arises from deliberate dishonesty.
Sometimes it comes from:
- Guessing figures instead of checking them
- Omitting something because it feels insignificant
- Giving an answer too quickly under pressure
- Not properly understanding what is being asked
But once a statement is made under oath, the standard is much higher.
“I didn’t think it mattered” is rarely a strong position to fall back on.
What should be done instead
The safest approach is simple, even if it takes more time.
- Check figures before confirming them
- Disclose information fully, even if you are unsure of its relevance
- Clarify questions rather than rushing to answer
- Take advice where there is any uncertainty
It is always easier to explain a position properly at the outset than to try and correct it later.
My guidance
Bankruptcy is not just about numbers. It is a legal process, and parts of that process carry criminal consequences if handled incorrectly.
The key is not perfection.
It is honesty, clarity, and care in how information is provided.
If there is any concern about what has been said, or what needs to be disclosed, it is always better to address that early. Because once something is formally recorded under oath, it carries weight.
Disclaimer
This article is provided for general information purposes only and does not constitute legal or financial advice. Each situation will depend on its own facts and specific circumstances, and you should not rely on the above without taking appropriate professional advice.
If you would like to discuss your situation in confidence, please contact:
Navigate Business Recovery Limited
Office: 0330 236 9937
Mobile: 07961 116321
Email: vee@navigatebr.com