Avoid Bankruptcy Fraud
Bankruptcy, when used in its proper manner as intended by law, can free an individual from a debt burden that they are unable to pay. This can be obtained through either a payment plan in Chapter 13 bankruptcy or through Chapter 7 bankruptcy. When not used properly, it can be a nightmare and even land you jail time. Even those with well intentions have found themselves on the wrong side of bankruptcy law. Your Sacramento bankruptcy lawyer can best advise you on how to proceed with your case and avoid bankruptcy fraud.
Avoid Bankruptcy Fraud
In June of 2017, a Van Nuys man found out the hard way that every rule and regulation regarding bankruptcy must be followed. This individual was arrested after allegedly setting up a scheme where his company would pressure homeowners to sign fake grant deeds giving the property over to his company and then filling bankruptcy under fictitious names to prevent these foreclosures from being sold. In other news the same month, a Michigan man, also a business owner, was charges with concealing assets in bankruptcy court. This attempt to hide how much he really owned landed him an 18 month jail sentence.
These tales of woe are just a couple of bankruptcy fraud cases that occur every month in the US. The good news for most individuals seeking debt relief is that you CAN NOT accidently commit bankruptcy fraud; it must be intentional. That means that if you intentionally fail to list a debt you owe, it will most likely result in your case being dismissed without the protection of bankruptcy. The common denominator in all bankruptcy fraud cases is that the perpetrators deliberately attempted to usurp the jurisdiction of the bankruptcy courts, and used them to gain a financial advantage. This is not what bankruptcy law in America is for. Instead, bankruptcy law should be looked at as a last ditch attempt to rectify personal or business debt.
If you are filling for bankruptcy, NEVER attempt to hide money or assets thinking the courts won’t find out. Furthermore, don’t think that you can give the money or property to family members or friends for safe keeping. These are the two biggest reasons that the federal bankruptcy courts initial criminal proceeds against individuals. A trained and experienced bankruptcy attorney can not only help you avoid criminal charges but also help you legally keep your property that you wish to keep. More importantly a bankruptcy attorney can help ensure that your bankruptcy passes the scrutiny of the courts and that you obtain the debt relief you need.
Categorized in: Bankruptcy