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What You Need to Know about Bankruptcy Fraud

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Some may view bankruptcy in a negative light. However, it is actually a way for businesses and individuals to discharge their debts and start anew. This gives them a second chance to rebuild what they have lost. With the help of a professional bankruptcy lawyer in Baltimore, Maryland, filing bankruptcy is made even easier. That is if you meet the requirements. Sadly, there are those who take advantage of this and commit bankruptcy fraud instead for their own benefit. And there are those who get accused of committing fraud even though it wasn’t their intention.

What is Bankruptcy Fraud?

This is a white-collar crime that is committed as such:

  • Not disclosing a property transfer before filing
  • Not disclosing assets in the bankruptcy paperwork
  • Asking for someone’s help to hide assets
  • Filing an incomplete bankruptcy form
  • Filing a bankruptcy form with false information
  • Destroying records or hiding them    
  • Using a false identity to file bankruptcy
  • Filing more than once in different jurisdictions
  • Filing on another person’s behalf without their consent
  • Bribing court-appointed trustees
  • Embezzling funds from a bankruptcy estate

Is it Always Intentional?

Believe it or not, there are times when bankruptcy fraud is committed unintentionally.  Because bankruptcy filing can be complex – involving a lot of paperwork and legal jargon – it is easy for unfamiliar individuals to commit mistakes. This often results in unintentional bankruptcy fraud. And unlike knowingly committing fraud, this type of mistake can be fixed; however, this doesn’t mean that you can get away scot-free because you can still face charges of bankruptcy fraud.

Another way of committing unintentional fraud is giving away your assets to friends and family before filing because you assume it’s fine to do so. But you’ll find out soon enough that it’s not when the bankruptcy court confiscates those assets and charges you with fraud. This is precisely why you need help from a renowned Baltimore-based bankruptcy lawyer if you want to avoid getting into this kind of trouble.

What is the Most Common Type of Fraud?

People intentionally committing fraud will almost always do it by concealing some of their assets. They do this by transferring the said assets to a family member or even a friend. While they may think those assets can no longer be linked to their estate, the bankruptcy court can still find out about it and confiscate them. Worse, those people will be charged with fraud. 

Is Proof Required to be Accused of Bankruptcy Fraud?

Concrete proof is needed to bring criminal charges against you. However, the trustee handling your case can report you to the authorities if they so much as suspect that something is not right. Being accused, even if no criminal charges are ever filed against you, can bring a lot of damage to your bankruptcy case. So make sure you do everything right from the get-go.

Avoid getting accused of bankruptcy fraud by hiring the right professional to help you out. Choose Atty. Richard Hackerman as your bankruptcy lawyer in Baltimore, Maryland, and he will help you every step of the way.

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