Bankruptcy Fraud

The tough decision to file for bankruptcy is made even more difficult by the rules, regulations, and stipulations surrounding the act. During bankruptcy, a person is required to disclose all assets, regardless of how much they seem to be worth. Many bankruptcy laws were set in place to keep people from filing fraudulent bankruptcy claims.

Disclosing Your Assets

If a person filing for bankruptcy attempts to conceal certain assets or make false claims, they may be charged with bankruptcy fraud. Fraudulent actions may include:

• Concealing assets
• Destroying or concealing documents
• Making false statements, declarations, and claims
• Fixing fees or making redistribution arrangements

During bankruptcy, it is important to disclose all assets in the bankruptcy forms, no matter if you feel the assets have value or not. The legal power to decide if something has financial value is left to the creditors, not the debtor.

Even after a bankruptcy is closed and the debtor has been discharged of debt, it can be reopened if charges are brought against the debtor for attempting to prove ownership of an unreported asset. In these cases, a judge or a U.S. Trustee might decide to charge the debtor for concealing the asset during the original bankruptcy proceedings. For this reason, it is important for those in debt to reveal all assets on their bankruptcy schedules.

Contact Us

If you are deep in financial trouble and considering filing for bankruptcy, it is important to have a knowledgeable bankruptcy attorney on your side to provide legal advice and help you avoid costly mistakes. To learn more about your legal rights and options, contact the Maryland mortgage modification attorneys of Chaifetz & Coyle, P.C. at 443-546-4608 today.