Bankruptcy fraud is a crime that usually comes down to hiding assets from the bankruptcy court, filing false or incomplete bankruptcy forms, filing multiple times or conspiring with or bribing the court appointed bankruptcy trustee.
Is bankruptcy fraud serious?
This is a serious offense punishable by up to 5 years in prison and fine of up to $250,000 or both.
Is bankruptcy fraud common?
Fortunately this type of fraud is quite rare. In the over 40,000 bankruptcy cases that our firm has filed, nobody has been convicted, or even charged with bankruptcy fraud.
Whilst some cases of fraud are deliberate, others are oversights due to not understanding the laws. This demonstrates why it’s so important to choose an experienced Minnesota Bankruptcy Attorney to file your bankruptcy.
What happens if bankruptcy fraud is discovered?
If fraud is discovered, the court may dismiss the case or deny the bankrupt person his discharge. Either way the debtor will never get his or her debts wiped out. Usually this is not worth the risk.
In a few cases bankruptcy attorneys have been convicted of bankruptcy fraud.
Can you hide assets?
If you are thinking about filing bankruptcy, you need to be honest with your attorney and disclose everything about your assets and debts. If you are lying or hiding assets from your lawyer, you have an excellent chance of being found out. If you are found out, the consequences are very unpleasant.
If you need help to decide whether to file Chapter 7 bankruptcy or Chapter 13 bankruptcy in Minnesota, Contact Us at 612-824-4357. The call is free, and it may turn your life around.