According to a report released by the FBI, Anthony Randall Simmons a 44 year old debtor who filed for bankruptcy has been charged with bankruptcy fraud. Federal authorities stated that Simmons filed bankruptcy and attempted to defraud the system by concealing assets that he should have disclosed. Specifically, Simmons allegedly failed to report $95,000 he received from the sale of an asset that should have been part of his bankruptcy estate. Simmons could receive a fine of up to $250,000 and five years in prison if convicted of bankruptcy fraud.
It's important for debtors considering bankruptcy to accurately disclose all assets and the proceeds of asset sales to the bankruptcy court. Failure to properly and accurately report your assets could result in the dismissal of your case, fines and a criminal conviction. It is not worth it. If it is true that this debtor concealed $95,000 during his bankruptcy, he could be paying a lot more out than he would have if he had only been honest. The truth about bankruptcy is that it allows debtors to keep more of their assets while still discharging debt. In Texas, generous bankruptcy exemptions allow debtors to protect many assets, including real estate, retirement accounts and even cash. Working with a professional and experienced bankruptcy attorney will help you identify how you can use your bankruptcy exemptions to properly and legally protect your assets from creditors.