Bankruptcy fraud occurs when a debtor misrepresents or conceals assets and financial information during bankruptcy proceedings. Some common types of bankruptcy fraud include concealing assets, bribing creditors, and bankruptcy protection scams. Committing bankruptcy fraud can result in civil penalties like loss of exemptions and discharge rights, as well as criminal penalties including fines, probation, and imprisonment of up to 5 years per fraudulent act. It is advisable to consult both a bankruptcy attorney and a criminal lawyer if facing allegations of bankruptcy fraud.

1. Bankruptcy Fraud And
Its
Various Aspects

2. We all know what bankruptcy is all about. For all those who are
unaware, let me explain. When you file for bankruptcy, you
actually let everyone know that you have no money left and
that you are unable to pay off your debts. The court where you
have filed the case then makes a decision regarding what kind
of property you still have, how much money you owe and which
are the creditors who will receive the money.

3. So far so good! But bankruptcy fraud occurs if the party,
either orally or in writing, claims to have less property
than in reality or hides any of his assets- it amounts to
bankruptcy fraud. This fraud can be of criminal and civil
type. Some of the common varieties include:
Concealing Assets
Bribery
Scams to "Protect" Homeowners and Renters
Other Acts

4. [A] Concealing Assets
This is perhaps the most common form of bankruptcy. When
you try to conceal your assets or provide false information
regarding your assets so that you have to pay less to the
debtors you end up concealing assets which is a bankruptcy
fraud.

5. [B] Bribery
When you try to
bribe the creditor
from not filing a
claim it amounts to
a fraud.

6. [C] Scams to "Protect"
Homeowners and Renters
There are many companies that “claim” to protect you from
eviction or foreclosure by paying a fee. But what they actually
do is that they file the bankruptcy claim without informing
you which amounts to a fraud.

7. [D] Other Acts
There are other ways by which this fraud can be caused.
Destroying of important documents, misleading the court, filing
for bankruptcy case in different states at the same time, making
false claims and so on.

8. Is there no penalty for causing
this fraud?
There are criminal and civil penalties depending on the
nature of the bankruptcy fraud. Some of these are discussed
below:

9. Civil Penalties
Forfeiture of discharge rights: when you claim
bankruptcy, your creditors can no longer collect
debts from you. But if you commit a fraud, the
collectors can sue you; foreclose your property as
well.
Loss of exemptions: when you file the case, you
need to inform the court about your property. But
that does not mean that all your property will be
taken away from you. But if you commit a fraud
everything you won will be taken away.

10. Criminal Penalties
Prison: the court can entenced to. However if you commit
multiple frauds, you will be asked to serve 5 years for each
fraud.
Probation: it may be osentence you to 5 years of prison. This
is the maximum number of years that you can be 3 years
(maximum). You need to meet the probation office during
this period and perform certain specific duties.
Fines: you may be asked to pay $250,000. It can be in
addition to prison and probation or as a separate decision.

11. Talk to a Lawyer
Bankruptcy fraud is a serious offence. It is advised that you
hire Bankruptcy attorney. However the bankruptcy lawyer
may not be enough and you need to hire a criminal lawyer for
his expert advice. In such a scenario, it is always best to hire a
law firm that has different types of lawyers under a single
roof. "RossBach Law Firm" is one such popular firm. Browse
their website to know more. www.rossbachlawfirm.com

12. Law Offices of Natasha Veytsman
Rossbach, PA
11 Newburg Avenue, Suite 203
Catonsville,Baltimore, Maryland
21228
United States
Ph No : 410-788-8208
Fax : 410-741-3208
410-788-8208
info@rossbachlawfirm.com
http://www.rossbachlawfirm.com/