What You Should Know About Bankruptcy Fraud

Bankruptcy fraud is a serious federal offense that can cost you more than
just your personal possessions – it can cost your freedom. There
are various ways debtors try to deceive the court from learning more about
personal finances. Many consumers may not realize that doing one act alone,
such as concealing an asset, can have you facing charges for fraud. To
help further explain the significance of bankruptcy fraud, consider the
following points.

  • There are 4 forms of bankruptcy fraud. These include concealment of assets,
    false or incomplete filed documents, multiple filings under false names,
    and bribing court appointed trustees.
  • Roughly 70 percent of fraud cases involve concealing assets. This can be
    done in different ways but a common form includes transferring titles
    to family members or friends.
  • Filing bankruptcy in multiple states is also fraud, but debtors that do
    this may use real or false personal information when filing forms. Some
    do this to buy more time to conceal assets.
  • Another form of bankruptcy fraud commonly involves unauthorized agencies
    or petition mills. These agencies act as a consulting service to help
    cash-strapped consumers from being foreclosed, evicted, or have further
    legal action taken against them. Such agencies claim to file bankruptcy
    for you and then they pull out and disappear from the case; leaving debtors
    out of money while charging exorbitant fees.
  • As a federal offense, bankruptcy fraud is punishable by up to 5 years in
    prison with a $250,000 fine in some cases. Probation is another option
    depending on the outcome, but you may end up being responsible for debt
    obligations that were intended for discharge or elimination.

At Allmand Law Firm, PLLC, our Dallas bankruptcy lawyers believe in the power of
bankruptcy – the power to help people who have fallen on tough times. By educating
clients about their rights and options and guiding them step-by-step through
the debt relief process the right way, we can help them not only get through
bankruptcy, but also be prepared for their financial future.

If you have questions about the bankruptcy process and how a team of experienced
attorneys can help you,
contact our firm for a FREE financial empowerment session.

By | 2017-12-13T01:55:22+00:00 October 24th, 2016|Bankruptcy Fraud|Comments Off on What You Should Know About Bankruptcy Fraud