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What You Should Know About Bankruptcy Fraud

Posted By Allmand Law Firm, PLLC || 24-Oct-2016

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.

Categories: Bankruptcy Fraud
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