In the most common circumstance of applying for a loan or mortgage, people are motivated to inflate their income and their assets as high as possible to convince credit providers that they are credit-worthy. However, there are at least three circumstances where people are motivated to “deflate” their income and net worth: income and personal property taxes; filing for bankruptcy; and finding oneself in a messy divorce. In all three cases, “income and net worth deflation” is something that is often considered and applied.
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Shirley Wayne | Co-Owner
SW Associates, LLC