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When Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud

When Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud
"""Bankruptcy fraud is a significant issue in the United States."" It is highly enticing to commit because, if effective, it can illicitly net the transgressor thousands of dollars to which they are not entitled.

There are particular regulations that define bankruptcy fraud. The penalties, including fines and probable jail time, vary depending on the state in which the offense was committed.

Knowingly making false statements to the bankruptcy court is an example of deception. For instance, you will be asked whether you have filed for bankruptcy within the past seven years. You may have filed for bankruptcy in another state or under a different name and attempt to file for a second bankruptcy in another state without being discovered. However, if you do so, you will have committed perjury and will be subject to prosecution for fraud.

The second type of fraud occurs when a filer conceals assets or properties from the bankruptcy trustee. No one desires to lose the valuable items they have accumulated over the years. Unfortunately, when you declare bankruptcy, the majority of your assets become candidates for liquidation. This is because the trustee is authorized to liquidate as many of our assets as possible in order to pay back your creditors. By concealing any of your assets, you commit fraud against the court.

A third type of bankruptcy fraud is willfully incurring debts prior to filing with the intent of never paying them back. Because they are defrauding a large corporation, many individuals view this as an innocuous form of theft. However, the courts take this much more seriously. They, along with credit card companies, will vigorously advocate for prosecution in such cases.

All of the aforementioned categories of fraud are committed by debtors. However, fraud can also be committed by a creditor. For instance, a creditor who is dissatisfied with the bankruptcy court's performance may attempt to circumvent the court and collect money from the debtor in other ways. If he endeavors to do so after learning that the debtor has filed for bankruptcy, he has also committed fraud against the court.

Since the passage of the new bankruptcy law, creditors have taken the provisions of the law much more seriously than ever before.

" - https://www.affordablecebu.com/
 

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"When Filing For Bankruptcy, Don't Be Tempted To Commit Bankruptcy Fraud" was written by Mary under the Finance / Wealth category. It has been read 244 times and generated 1 comments. The article was created on and updated on 01 June 2023.
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