To understand bankruptcy fraud, you need to understand bankruptcy. Many people turn to bankruptcy when their debts outweigh their liquid assets. In this case, they will either file chapter 7 or chapter 13 bankruptcy. If you file bankruptcy and don’t give an accurate accounting of your assets, you are committing bankruptcy fraud. This is a serious crime that can land you in jail for many years. If you are accused of bankruptcy fraud, immediately contact a bankruptcy attorney.
According to the laws of the state of New York, there are 3 type of bankruptcy fraud: multiple filings, petition mills and concealing assets. Some people mistakenly believe if they leave property or some possessions off their asset list they will be able to keep it. Some people try to get cute and think they can trick the bankruptcy courts with ownership transfers. This can easily be unearthed. Once it is, you could be in a world of trouble. This is the reason why anyone accused of bankruptcy fraud should retain a lawyer as soon as possible. Let an experienced professional help you launch a successful defense.
Some businesses and corporations also opt to transfer wealth to offshore banks in other countries. An example is using bankruptcy to avoid repaying a hard money loan taken out previously, or stealing money after a reverse merger is done. Although the U.S. courts have no jurisdiction over wealth in another country, it is still seen as fraud. bankruptcy courts are well aware of such schemes to hid money. Fraud like this can land you in jail. If you are accused of not reporting all of your income or assets, find an experienced bankruptcy fraud lawyer to help you sort out your case.
Another way some people attempt to scam bankruptcy courts is to file multiple times in different states. This is a not so clever way to hide assets. A person may only have one active bankruptcy going on at once. There also attempts to defraud by using multiple names. Sometimes a person will use their maiden name in an attempt to falsify paperwork.
The petition mill fraud is probably the most egregious type of bankruptcy fraud. Individuals prey on poor and disenfranchised people who are going through an eviction. These mills will file bankruptcy for the person and charge ungodly fees. It leaves the filer flat broke with ruined credit.
There is a test to determine if you qualify for bankruptcy. If you have a certain disposable income left over at the end of the month, you will be able to file for either chapter 7 or 13. Bankruptcy fraud is a federal crime. If you get caught, you could serve up to 5 years in prison and face fines up to $250,000. This doesn’t include the restitution you will be forced to pay. If a bankruptcy fraud investigation comes down the pike, you should be ready. Allow a professional bankruptcy attorney to help you get your life back on track.
Many people don’t understand the consequences if they are charged with bankruptcy fraud. The bottom line is you need a seasoned professional to help present your case. There are times when a mix-up can be completely innocent. If paperwork isn’t filled out in the correct manner, you could be facing a bankruptcy fraud charge. This type of white collar crime can result in you losing your freedom for a long time. In these cases, it is also wise to seek out help. An experienced attorney can get you all the help you need. So, if you get charged with bankruptcy fraud, contact a Queens lawyer with a solid track record. Only a professional with a solid track record can supply the help you need to beat a bankruptcy fraud lawyer.