5 Things You Should Know about Bankruptcy Fraud (Part 2)

March 8, 2014

The single most important thing to know about bankruptcy fraud is that you will avoid facing criminal charges if you work with an experienced attorney.

The single most important thing to know about bankruptcy fraud is that you will avoid facing criminal charges if you work with an experienced attorney.

Continuing from 5 Things You Should Know about Bankruptcy Fraud (Part 1), here, we will discuss three more facts that people who be aware of when it comes to bankruptcy fraud. If you have additional questions, or if you would like to know more about whether filing for bankruptcy is the right choice for you, call the Law Office of Jon B. Clarke.

  1. Bankruptcy trustees can report charges if they think there is something fishy with a case – Bankruptcy trustees are the court-appointed officials who oversee a bankruptcy case. If these officials suspect that something is not right with a filing – for instance because there is documentation of homes, vehicles or other assets having been purchased but there is no documentation of these assets being sold, then they can (and most likely will) report these discrepancies to law enforcement officials.

    This means that it’s crucial that your bankruptcy documents are properly and thoroughly completed in order to prevent serious complications with your case.

  2. Bankruptcy fraud is a federal crime – When a trustee has reported suspected bankruptcy fraud, the case is passed on to the Office of the U.S. Trustee and then to the U.S. Attorney or the FBI for further investigation. If official charges are filed against the accused individuals, these will be federal charges that, upon conviction, can result in prison sentences of up to 5 years.

    In addition to prison time, people convicted of bankruptcy fraud can also be penalized with hefty fines, a permanent criminal record and loss of their professional licenses.

  3. Working with an experienced attorney is the best way to avoid fraud and resolve a bankruptcy case as efficiently as possible – The bottom line with bankruptcy fraud is that, in order to avoid inadvertently committing it, it’s crucial that you hire an experienced attorney to handle your bankruptcy case. While federal bankruptcy charges can result in serious penalties, they can also have long-term effects that will ruin the fresh start you were trying to obtain through bankruptcy.

Colorado Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.

If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. For more than 35 years, Mr. Clarke and his diligent support staff have been successfully helping our clients resolve even the most complex bankruptcy cases for both individuals and businesses alike. Our experienced legal professionals are committed to providing each of our Clients with the personalized debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible.

For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950 or email us some details about your situation by clicking here.

Categories: Bankruptcy, Bankruptcy Fraud, Bankruptcy Laws, Blog, Colorado Bankruptcy Lawyers