Bankruptcy is meant to be a last-resort option for those under financial duress, a way out of crippling debt for people with no others means of escaping such a massive burden. Unfortunately, not everyone makes honest use of the bankruptcy system, and bankruptcy fraud sometimes results. If you're considering bankruptcy, it's important to understand what constitutes fraud and how you can avoid it.
Don't Leave Out Required Information
When you file for bankruptcy, you will be required to fill out a number of different legal forms and documents. You absolutely must be honest in all of your answers. This means you are required to provide all requested information and should not omit anything, no matter how large or small. If you have questions about what these forms ask of you, consult your bankruptcy attorney; they will explain everything to you in detail and will advise you to complete all paperwork as accurately and fully as you can.
Be Aware of Penalties
If you do commit bankruptcy fraud, either knowingly or inadvertently, you could face some severe penalties. Those found guilty of bankruptcy fraud could be charged up to $250,000 in fines or up to 20 years in jail. The scope and severity of these punishments illustrate just how serious the government takes the issue of fraud, so be certain you are being honest and forthcoming and following all applicable laws.
Some Examples of Bankruptcy Fraud
So, what, exactly, constitutes fraud of this type? Basically, providing any dishonest information or omitting any requested information is considered fraudulent. Some more common examples include "hiding" property by transferring ownership to another party; not listing all of your assets on the bankruptcy schedules; and creating deceitful documents to submit to the courts.
If you're thinking about bankruptcy, trust Jeremy Bueker of Bueker Law Firm to guide you through the process ethically, efficiently, and with a minimum amount of stress and hassle. Attorney Bueker has more than 16 years' experience representing the people of the Stuttgart, AR, area. Call (870) 673-1313, visit his firm's website, or message them on Facebook to arrange a free consultation with a bankruptcy lawyer.