Bankruptcy Fraud Crimes
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Bankruptcy Fraud Criminal Defense Lawyer
Bankruptcy is a right that every American individual or business has, when insolvent or when facing insolvency, to place their affairs in the hands of the Bankruptcy Court. When an individual or corporation is unable to pay their creditors, they have the option of filing for bankruptcy. A creditor can also file for bankruptcy against one of their debtors in an effort to obtain a portion of the money they are owed.
Concealment of assets
Bankruptcy fraud occurs in approximately 10% of all filings, and of those, about 70% of cases involving individuals are the result of the concealment of assets.
The concealment of assets occurs when the individual declaring bankruptcy fails to include, or includes a lower value of, assets so their creditors cannot liquidate them. Businesses can also commit this crime by transferring money or property to relatives or associates, effectively keeping it from creditors.
Petition Mill
Another common form of bankruptcy fraud is a petition mill, wherein the perpetrator will pose as a financial advisor and file incorrect or unnecessary bankruptcy papers for their clients. An individual committing this crime will often lure in clients with the promise of “making debt disappear” or offering to take care of high-interest loans or foreclosures. They may ask for a large payment up front and will then file for bankruptcy for their client, usually without their client’s knowledge.
Multiple Filings
When an individual or business files for bankruptcy in more than one state, this constitutes the crime of a multiple filing. This is usually done in conjunction with the concealment of assets.
All of the above types of bankruptcy fraud can hold severe consequences for the offender. Bankruptcy fraud is a felony and can be punishable by a fine of up to $250,000 and/or a prison term of up to 5 years. Having a criminal defense team such as Mr. Bernstein and his staff, that is dedicated to your success and your freedom, is necessary to protect your rights, avoid fines, and stay out of jail.
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