once Filing For Bankruptcy, Don’t Be Tempted To Commit Bankruptcy Fraud

Once Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud

Bankruptcy fraud is a huge problem in the United States. It is very tempting to commit because, if successful, it may allow the transgressor illegally profit with 1000s of dollars that they should not be entitled.
There are specific rules define bankruptcy fraud. The penalties, fines and possible jail terms, vary in accordance with the state where they may be committed.

Once Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud

Once Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud
One form of fraud is knowingly making fraudulent statements to the bankruptcy court. For example, one question that you will be asked is when you might have filed for bankruptcy within the last seven years. You may have filed for bankruptcy in another state or under another name and continue to make do with submitting a second bankruptcy in another state convinced that you won’t be found out. But, if you do so, you might have committed perjury and will be prosecuted for fraud.

Once Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud

A second sort of fraud is where a filer tries to conceal assets or properties that he owns in the bankruptcy trustee. Naturally, stuffed to lose valuable possessions they’ve acquired in the past. Unfortunately, if you seek bankruptcy relief, most assets that you own become possible candidates for liquidation. This is because the trustee is empowered to trade off as much of our assets as he can to increase cash with which to pay back your creditors. By hiding many assets, you are committing a fraudulent do something about the judge.

Once Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud

A third type of bankruptcy fraud is if you knowingly run up debts before filing for bankruptcy with all the intent of never paying of the a reimbursement. Many people look upon this being a harmless way of larceny because it are a wide company that they may be cheating. The courts, however, look upon this far more seriously. They, plus the credit card companies, will strenuously push for prosecution in cases like this.

Once Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud

The above varieties of fraud are committed by debtors. But, fraud might be committed by the creditor too. For example, sometimes a creditor frustrated to get the money he is owed in the bankruptcy court, will attempt to go around a legal court and collect money through the debtor in other ways. If he attempts this after receiving notification how the debtor has filed for bankruptcy, he’s committed fraud upon the court too.

Once Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud

Since the new bankruptcy law has passed, creditors more than ever before before, have become much more set on enforcing the provisions in the laws.

Once Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud
Once Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud

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