The Dangers of Bankruptcy Fraud
Warnings from our Maryland and Washington DC Bankruptcy Attorney
Bankruptcy fraud is a federal offense. Even if you are an accidental offender and were simply unaware of bankruptcy laws, you can be convicted of the crime. If you are filing for Chapter 7 or Chapter 13 bankruptcy, knowing the law is also necessary for avoiding the suspicion of fraud.
Kevin D. Judd is an experienced Maryland and Washington DC bankruptcy attorney. He can steer you away from any suspicion of bankruptcy fraud and prevent other mistakes. If you are fighting with debt and considering bankruptcy, The Law Firm of Kevin D. Judd will help you decide how to proceed. We can then help you navigate your bankruptcy without the fraud risks.
What is Bankruptcy Fraud?
Bankruptcy fraud is a broad crime defined by federal laws to protect debtors and creditors alike to ensure that bankruptcy is as fair as possible to both parties. Four major types of bankruptcy fraud are as follows:
- Concealing Assets. This is easily the most common form of bankruptcy fraud. Debtors must report all income and property to a court-appointed trustee, who sells off property to pay creditors. Failing to report assets, transferring, or otherwise hiding property constitutes fraud.
- Providing False Statements. Those filing for bankruptcy must fill out the necessary paperwork, and must be entirely honest throughout the process. Leaving out information or inputting incorrect information can lead to bankruptcy fraud charges.
- Filing Multiple Claims. Some people attempt to file for bankruptcy on multiple occasions in the same state with the use of fake identification. Others apply for bankruptcy in multiple states. Filing multiple bankruptcies is fraud.
- Trustee Fraud. Instances of the trustee attempting to deceive the court, working either with or at the expense of the filer, may result in serious penalties.
Quick Tips to Avoid Bankruptcy Fraud
Most bankruptcy filers do not want to abuse the system for personal gain. Thus, they should have nothing to hide financially. As such, the best tip is to disclose all property and assets, admit any previous bankruptcy filings and generally be honest and open throughout the process.
Additionally, a licensed bankruptcy lawyer is a valuable ally in trying to avoid suspicion of bankruptcy fraud. An attorney can help you file your bankruptcy paperwork and ensure the court has a list of all of your income and assets. An attorney may also help answer any questions, and can clear up any issues that might arise in complicated cases.
Don’t Risk Bankruptcy Fraud
Bankruptcy fraud can lead to fines of $250,000 or five years in prison. If you are considering filing for Chapter 7 or Chapter 13 bankruptcy, then you cannot afford to risk fraud charges. Kevin D. Judd, an experienced Maryland and Washington DC bankruptcy attorney, offers a free consultation. Let us help you today. Call (202) 483-6070.