The Federal Bureau of Investigation (FBI) once estimated that 10% of bankruptcy filings are fraudulent, or at least in part. Consequences of this type of fraud, whether it was done intentionally or not, are very serious and can haunt an individual for years. The good news is, if you or a loved one is accused of bankruptcy fraud you are most likely able to post a bail bond and be released from jail prior to the court hearing. But how can you avoid bankruptcy fraud in the first place?
Bankruptcy as a Viable Solution
Individuals (and organizations) can file bankruptcy when debts pile up and become unpayable. Creditors aren’t able to sue once the bankruptcy is filed with the courts. Instead, the creditor must go to the bankruptcy court where the petition was filed in order to make a claim against assets.
Filing a bankruptcy petition has saved many individuals and companies from an impossible financial situation. The safety net of bankruptcy fosters an environment where people feel supported to take chances, which ultimately boosts our economy.
Unfortunately, some people abuse the process and commit bankruptcy fraud. Even if the fraud is accidental, serious consequences are imposed when someone is found guilty.
The most common types of bankruptcy fraud include:
- Concealment of Assets
- Petition Mills
- Multiple-filing Schemes
- Bust-out Schemes
- Destruction of Financial Documents
- Attempting to Bribe an Official
- Making a False Claim
How to Avoid Bankruptcy Fraud
Concealment of assets is found to be the most prevalent type of bankruptcy fraud. When a debtor neglects to disclose all of their assets, or conceals one or more assets, this is a very serious matter. Making accurate statements about your property, in writing, is essential to avoiding bankruptcy fraud.
When filing for bankruptcy, be sure to be completely honest about your financial situation, any assets you may have, and any previous bankruptcies. Do not attempt to sell anything once you have started the process. Always consult with a qualified bankruptcy attorney for the best outcome if you plan to file for bankruptcy.
Whether you are filing for Chapter 7, Chapter 11, Chapter 13, or Chapter 20 bankruptcy it is important to remain transparent about what you owe and what you own.
Get Out of Jail Fast
If you find yourself or a loved one has been arrested for bankruptcy fraud, it is important to speak with an attorney right away so they can start gathering facts and building a case. At Frank Calabretta’s Bail House we work with all kinds of people who have been arrested for a variety of accusations to quickly get them released from jail before their appointed court date. Give us a call anytime for bail bonds 24 hours a day at (916) 782-7048.
Speak with one of our licensed bailbondsman and we can help whether you are local in Roseville, Sacramento, Auburn, Placer County, or in the broader state of California. Even if you or your loved one is located in another state, we can work with the appropriate court to be released.