What is Bankruptcy Fraud?

: Reese Baker & Associates

  Filed under: Filing bankruptcy

fraudMost people that are filing for bankruptcy are honest individuals that have run into financial difficulty and have no way of rectifying this situation. Then there are some who try to exploit the bankruptcy laws by committing Bankruptcy fraud.

Risky Business

This can be done in several different ways. Some people try to hide assets that they do not declare in their Houston bankruptcy filing. Another type of fraud is improperly completing the many different forms that come with a bankruptcy application. Then there are some individuals who will file several different bankruptcies but will use different information each time within the same state. Or, they will go to different states and file.

While in some cases what may look on the surface as a bankruptcy fraud could be an innocent mistake. Perhaps forgetting to disclose some assets or making an error on the form. It is a wise idea for any individual going bankrupt to use the services of a bankruptcy attorney. This helps to eliminate possible errors that could be misconstrued as fraud. Then it also helps to have a professional who knows how the bankruptcy courts work. As with any legal entity, bankruptcy can be a bit overwhelming and at times complex. When using professional help these are of no concerns.

In any event, committing bankruptcy fraud is a white collar crime that nobody should become involved in. Bankruptcy is a form of debt relief that has helped many individuals get back on their financial feet.