bankruptcy fraud
TRANSCRIPT
Bankruptcy Fraud AndIts
Various Aspects
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.
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 AssetsBriberyScams to "Protect" Homeowners and RentersOther Acts
[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.
[B] Bribery
When you try to bribe the creditor from not filing a claim it amounts to a fraud.
[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.
[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.
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:
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.
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.
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
Law Offices of Natasha Veytsman Rossbach, PA
11 Newburg Avenue, Suite 203Catonsville,Baltimore, Maryland
21228United States
Ph No : 410-788-8208Fax : 410-741-3208
http://www.rossbachlawfirm.com/
Ref : https://rossbachlawfirm.wordpress.com/2015/12/03/bankruptcy-fraud-and-its-various-aspects/
