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
- 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.