Tag Archives: #BankruptcyLaw

What are the Consequences of Bankruptcy Fraud?

Bankruptcy laws are designed to protect honest individuals who find themselves in financial turbulence. But what happens when you are dishonest to the bankruptcy court? Bankruptcy fraud can put you in a world of trouble. When filing for bankruptcy, you are required to sign a number of disclosure statements that your paperwork is “complete and accurate” (to the best of your knowledge). People do make honest mistakes, so those types of errors are not punished. It is when the mistakes are deemed to be purposeful that the matter of fraud comes into question. If the bankruptcy court suspects that anything in your bankruptcy filing is a lie, the trustee will investigate the matter. If they determine that you did, in fact, intend to deceive them in your bankruptcy filing, you could face perjury charges. Perjury is a federal crime, the penalty for which is prison time of up to five…
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What Will My Life Be Like After I File Bankruptcy?

Most people who have never filed for bankruptcy do not know what to expect from the process. Bankruptcy can offer people relief from their financial struggles, even issues involving student loan and income tax debt, and it enables them to regain control of their financial future. However, there has always been this stigma surrounding bankruptcy, as if filing for bankruptcy means you have failed somehow and you should be ashamed, which could not be further from the truth. In many cases, people are struggling financially due to circumstances out of their control, such as job loss, divorce or medical debt from a sudden illness. Bankruptcy is a legal tool that offers you a chance to fix your financial troubles so that you and your family no longer have to struggle. Obviously, life will be different following bankruptcy, but that is not necessarily a bad thing. What Do I Need to…
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Can My Spouse Be Held Liable for My Business Debts?

If you are married and filing for bankruptcy for a business, you might wonder if the bankruptcy will affect your spouse. The short answer: it is complicated. You and your spouse could hold personal liability for business debts if your business structure does not offer limited liability. This usually is the case for sole proprietors of businesses or general partners. Debt liability for your spouse occurs the same way it would for personal debt: if you and your wife are general partners, both of you will be responsible for debts. If you are a limited partner, however, or your business is a corporation or limited liability company, your spouse is likely not responsible for debts. If you and your spouse are cosigners for a business debt, you are responsible for paying that debt back, even if your business provides limited liability. Even if your spouse is not a cosigner, he…
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