What is Bankruptcy Fraud?
The crime of bankruptcy fraud occurs when those filing for bankruptcy perform criminal acts by concealing assets or making fraudulent claims or false statements. Some bankruptcy fraud through falsification on forms can even be considered perjury, as can swearing a false oath in a judicial proceeding.
Different types of bankruptcy fraud may include or involve:
- Concealment of assets
- Destruction or concealment of documents
- False statements or false declarations
- Fraudulent claims
- Redistribution arrangements or fee fixing
- Conflicts of interest
To avoid bankruptcy fraud, the person in debt must disclose all of his or her assets in bankruptcy forms, regardless of whether or not he or she believes these assets have value. The person in debt does not have the legal power to decide if assets are valuable; rather, creditors make this decision. A debtor can face serious consequences if he or she leaves off any assets from bankruptcy schedules.
A closed bankruptcy can be reopened, even after the debtor has been discharged of all debt, if the debtor tries to later prove ownership of an unscheduled asset. In turn, a judge or U.S. Trustee may decide that the debtor should be persecuted for concealing the asset.
It is important for anyone considering bankruptcy to follow proper legal procedures to avoid taking any unlawful steps. This is why it is imperative to consult with knowledgeable and experienced bankruptcy lawyers to help you with your case. Contact the Milwaukee bankruptcy law attorneys of the DeLadurantey Law Office today at 414-377-0518 to learn more about filing for bankruptcy and to discuss your situation with a qualified lawyer.