Many Americans today are struggling with their finances. Each year it is estimated that there are over 500,000 families across the United States that will end up filing for a bankruptcy. This number may come as a shock to you but we want you to be aware of the facts that filing for a bankruptcy is nothing to be ashamed or scared about. Filing for bankruptcy is more common than most people may think. In this article we are going to discuss the topic of bankruptcy fraud, while including some examples so you don’t fall victim to making some of these mistakes that could end up leaving you with a hefty fine or even land you behind bars.
Bankruptcy Fraud
What is bankruptcy fraud you might ask? This type of fraud usually occurs when a filer decides that he or she will behave dishonestly when filing for a bankruptcy. The most common types of fraud associated with this topic is the concealment of assets. When you declare bankruptcy, you must disclose all of your personal information accurately and honestly. This information that you must disclose accurately includes listing all of your income, property, creditors, and prior transactions.
Examples
- Concealment of assets is considered fraud
- Making knowingly false statements to the court is considered fraud
- Purchasing items on credit with the intent of filing for bankruptcy instead of paying for the items you purchased is considered fraud
- Bribing your court-appointed trustee is considered fraud
- Filing for multiple bankruptcy petitions in several states is considered fraud
Consequences
Bankruptcy fraud is no laughing matter and has major consequences if you are caught in the act. Anyone who decides to make false statements that they knowingly know is not accurate can be assessed a fine of up to $250,000 and possibly receive a prison sentence of up to 20 years. As we mentioned earlier, committing bankruptcy fraud is no laughing matter, make sure that you are thinking rationally before you decide you want to try and cheat the system. If you are caught it could have dire consequences for the rest of your life.
Avoiding Bankruptcy Fraud
The easiest way to avoid bankruptcy fraud is to be honest and transparent when disclosing all of your personal assets. It is important that you do not try and hide anything from the courts and your creditors because if you do you could have very bad consequences to deal with. Be honest and make sure to list everything so that you do not have any problems in the future with the courts and your creditors. Bankruptcy fraud is a serious offence and has serious consequences, so make sure you think twice if you have thoughts of committing bankruptcy fraud.
Final Thoughts
We at The Weller Legal group hope that the information provided to you in this article helped educate you on the topic of bankruptcy fraud and on some of the ways you can protect yourself from accidentally committing fraud. Bankruptcy fraud has serious consequences so it is important if you a deciding to file for bankruptcy you disclose your personal information accurately and honestly. With that being said if you are planning to file for bankruptcy in the near future we at The Weller Legal Group have over 20 years of experience in helping our clients with their bankruptcies and improving their credit scores. We have offices located all throughout Florida, including, Clearwater, Port Richey, and Lakeland. If you have any additional questions in regards to filing for bankruptcy or working on improving your credit score in the near future feel free to give us a call today at 1-800-407-3328.
Picture Credit: Melinda Gimpel
