Bankruptcy fraud can lead to serious federal criminal charges being filed against a person. While some acts of bankruptcy fraud may be intentional attempts to defraud creditors (and the courts) in order to get debt fraudulently discharged, in other cases, people who do not have an experienced attorney overseeing their case may unknowingly do something that qualifies as bankruptcy fraud, potentially landing themselves in hot water.
In this three-part blog, we’ll highlight some things you should know when it comes to bankruptcy fraud in the U.S. If you’re considering pursuing a bankruptcy case as a way to get out from under serious debt, make sure you consult with trusted Denver Bankruptcy Lawyer Arthur Lindquist-Kleissler to ensure that your case proceeds as smoothly as possible.
How Bankruptcy Fraud Occurs: Types of Bankruptcy Fraud
Failing to disclose one’s assets in a bankruptcy petition is the most common form of bankruptcy fraud. Here’s some more info on bankruptcy fraud in the U.S.
Some of the ways that people may commit bankruptcy fraud can include by:
- Failing to disclose all of their assets as part of a bankruptcy proceeding – In fact, if people “hide” certain assets or try to transfer these assets to a relative or friend to avoid having them be included in the bankruptcy estate, this can be considered to be an act of fraud (as the court will see it as an attempt to avoid paying creditors with the means a person may have available).Concealment of assets from the court is the most common form of bankruptcy fraud, as the Department of Justice reports that close to 70 percent of all bankruptcy fraud cases involve the failure to disclose all of one’s assets to the court.
- Filing multiple bankruptcy petitions – In some cases, people may submit multiple bankruptcy petitions as a means to try to fraudulently get their debt discharged. While this type of bankruptcy fraud can involve filing for bankruptcy under multiple (possibly false) names, it may also arise when people try to file for bankruptcy in multiple states at the same time.
Be sure to look for the upcoming second part of this blog for our continued discussion of bankruptcy fraud in the U.S.
Denver Bankruptcy Lawyer at Lindquist-Kleissler & Company, LLC
If you are drowning in debt or are facing any serious financial crisis, Denver Bankruptcy Lawyer Arthur Lindquist-Kleissler is here to help you figure out your best options for resolving your financial issues.
Since 1979, Mr. Lindquist-Kleissler and the other legal professionals at Lindquist-Kleissler & Company, LLC have been providing both individuals and businesses with the highest quality of legal services when it comes to debt relief and bankruptcy (including civil litigation matters associated with bankruptcy). From simple to complex bankruptcy cases, Mr. Lindquist-Kleissler can always be trusted to maximize utilization of Colorado Bankruptcy Law to effectively guide his clients through bankruptcy and help them achieve the best possible outcomes to their cases.
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Contact us by calling (303) 691-9774, or email us using the contact form on this page. You will pay nothing up front to obtain trusted, professional advice regarding your case and your options.
From our office in Denver, Arthur Lindquist-Kleissler represents clients throughout the Great Denver Metropolitan area and Colorado, including (but not limited to) Aurora and Arapahoe County.
