Skip to content
Home | Blogs | What Is Bankruptcy Fraud

What Is Bankruptcy Fraud

    Bankruptcy fraud refers to any illegal activity or misrepresentation made in connection with a bankruptcy case, with the intent of obtaining a benefit or avoiding a legal obligation. Here are some common examples of bankruptcy fraud:

    1. Concealing assets: Hiding assets from the bankruptcy court, such as property, money, or other valuables, to avoid having them included in the bankruptcy estate.
    2. Filing multiple bankruptcy cases: Filing multiple bankruptcy cases in different jurisdictions or under different names with the intention of avoiding the consequences of previous bankruptcy cases.
    3. Making false statements: Making false statements on bankruptcy petitions, schedules, or other bankruptcy-related documents, such as overstating debts or underreporting assets.
    4. Transferring assets: Transferring assets to others in an attempt to keep them out of the bankruptcy estate.
    5. Using bankruptcy to commit fraud: Using the bankruptcy process to commit other types of fraud, such as credit card fraud, mortgage fraud, or tax fraud.

    These are only some examples of bankruptcy fraud and it’s illegal to engage in any form of fraudulent activity in connection with a bankruptcy case. Penalties for bankruptcy fraud can include fines, imprisonment, and a criminal record, so it’s important to be honest and forthcoming when filing for bankruptcy.