Bankruptcy fraud allegations are very serious. Not only can false or misleading statements cause your debts not to be discharged, but you could wind up doing a stint in federal prison if you are convicted on the charge.
Bankruptcy fraud can take many forms. Some of these include:
- Misrepresenting your income
- Stashing assets
- Inflating expenses
- Running up lines of credit before filing
- Undervaluing stock or other assets
Debtors may assume that there is no way the courts could discover their deception. However, prisons are full of bankruptcy fraudsters who likewise thought their misdeeds would go undetected by the trustee or the court.
If you can conceive of a scam to hide assets or inflate your expenses, rest assured that it has been tried by other debtors in the past. It’s just not worth facing a felony charge over it.
The Department of Justice investigates and prosecutes bankruptcy fraud both separately and in conjunction with the Office of the United States Trustee. They often get tips from the general public and build cases against fraudsters based on those tips that they investigate.
Don’t wind up in legal jeopardy over your finances. If you are considering filing for bankruptcy under Chapter 11, it’s important to make sure to do it correctly. A Tampa bankruptcy law attorney can review your case and offer guidance and direction. Bankruptcy law is a very complex and intricate segment of the legal realm and few non-attorneys are equipped with the skills and knowledge to successfully navigate their case through the court processes to get their debts discharged.