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

Past 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 could allow transgressor illegally profit with lots of money which they should not entitled.
There are specific rules that define bankruptcy fraud. The penalties, fines and possible jail terms, vary in line with the state where these are committed.

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

Past Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud
One type of fraud is knowingly making fraudulent statements on the bankruptcy court. For example, one question you are asked is if you’ve got filed for bankruptcy within the last seven years. You may have filed for bankruptcy in another state or under another name and attempt to make do with filing an additional bankruptcy in another state convinced that you may not be found out. But, should you choose so, you might have committed perjury and may be prosecuted for fraud.

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

A second form of fraud is the place a filer tries to conceal assets or properties which he owns from the bankruptcy trustee. Naturally, nobody wants to shed valuable possessions they have acquired over the years. Unfortunately, once you declare themselves bankrupt, most assets that you simply own become possible candidates for liquidation. This is because the trustee is empowered to offer off quite as much of our assets as he can to boost money using which to pay back your creditors. By hiding many assets, you happen to be committing a fraudulent act upon the judge.

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

A third kind of bankruptcy fraud is whenever you knowingly increases debts just before submitting bankruptcy with all the intent of never paying of the cash back. Many people look upon this being a harmless type of larceny because it is a big company that they are cheating. The courts, however, look upon this much more seriously. They, as well as the credit card issuers, will strenuously push for prosecution in this situation.

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

The above varieties of fraud are committed by debtors. But, fraud may be committed by the creditor as well. For example, sometimes a creditor frustrated when you get the money he’s owed in the bankruptcy court, attempt to serve a legal court and collect money through the debtor in alternative methods. If he attempts this after receiving notification that the debtor has filed for bankruptcy, he’s got committed fraud upon the court as well.

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

Since the new bankruptcy law has gone by, creditors more than ever before before, have become a lot more set on enforcing the provisions of the laws.

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

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