Bankruptcy Fraud

NATHAN A BERNEMAN APC

BANKRUPTCY FRAUD

CHAPTER 7 & CHAPTER 13

When you file bankruptcy, the process requires that you lay all your cards on the table. You have to be precise about what you have, and what you owe.

This means you have to list all of your property, and you must also list any property that has been transferred to other people in the recent past.

If you do not follow these rules when you file for bankruptcy, you may be prosecuted for bankruptcy fraud.

CHAPTER 7 & CHAPTER 13

BANKRUPTCY FRAUD IN CHAPTER 7 Chapter 7 allows the filer to keep a reasonable amount of assets but liquidates the rest to pay creditors debt as much as possible.

The court looks at what they owned recently and either gave away or sold.

Real estate is a common point of contention in Chapter 7 bankruptcy fraud cases because owning property can tip the scales and disqualify you from Chapter 7 in some cases.

CHAPTER 7 & CHAPTER 13

BANKRUPTCY FRAUD IN CHAPTER 13 Your bankruptcy trustee pools all your debt and looks at your assets and income and determines what you should be able to pay monthly for the next 3-5 years, depending on your circumstances.

The bankruptcy is active during that time, and at least a portion of each debt is demanded to be paid. Not disclosing debt can skew the calculation and make you subject to perjury, as well as fraud charges.

CHAPTER 7 & CHAPTER 13

PENALTY FOR BANKRUPTCY FRAUD The conditions of bankruptcy fraud are outlined in Section 523 of the Bankruptcy Code, which explains that debts cannot be discharged under pretenses, with false representation, or due to fraud.

The filer’s assets are liquidated to pay off as much of their debt as possible. In addition to losing the ability to file bankruptcy, there may also be legal action taken against the filer that may include fines up to $250,000 and five years in federal prison.

CHAPTER 7 & CHAPTER 13

Discussing the possibilities and penalties of bankruptcy fraud is not meant to discourage bankruptcy as on option for those who truly need that lifeline in their financial lives.

Nathan A Berneman, APC is a bankruptcy attorney in Los Angeles, CA that can help assure that you recall all your debts and assets in your bankruptcy case.

Call : 877-620-0044