Most criminals know they are committing a crime or participating in illegal activity, but there are others who unintentionally or inadvertently break the law. Bankruptcy fraud is one of the most common types of crimes that are committed unbeknownst to the one filing. If you are preparing to file for bankruptcy or see bankruptcy as a potential in your financial future, it is important to ensure that you are following all guidelines and meeting all legal expectations during the process.

Continue reading to learn the top four ways to avoid bankruptcy fraud and who to call if you are currently facing such charges or similar white-collar criminal charges in Indiana.

Bankruptcy Fraud is a Federal Offense

In all states, bankruptcy fraud is categorized as a white-collar crime. White-collar crimes are felony offenses that tend to render more serious convictions and harsher penalties, including jail time and heavy fines. If convicted of bankruptcy fraud, one will face up to five years in jail and up to $250,000 in fines.

To mitigate such fraud, case trustees are appointed by the court to confirm the veracity of the filer’s bankruptcy. If you are filing for bankruptcy, a bankruptcy trustee will inquire about your case by reviewing your assets, asking you questions about your financial history, and more.

Bankruptcy trustees are put through a concentrated training program, giving them the acute acumen and skills to identify inconsistencies and suspicious activities among one’s bankruptcy filings. For this reason, it is important to protect yourself from mistakenly committing bankruptcy fraud by doing your research.

Although it’s not expected of you to understand all of the complexities of such legal processes, as someone filing for bankruptcy, the law holds you responsible for any egregious mistakes you might make. Therefore, it is important to uphold your duty by educating yourself on how to file for bankruptcy correctly and within legal guidelines.

How to Prevent Bankruptcy Fraud

Fortunately, there are plenty of ways you can prevent committing the crime of bankruptcy fraud. Hiring a bankruptcy attorney is a great way to ensure that all of your paperwork in filings are correct. For now, start with these top four tips on how to avoid bankruptcy mistakes that can lead to white-collar criminal charges:

❶ DO NOT PROVIDE FALSE INFORMATION ON YOUR BANKRUPTCY FORMS

When filling out your bankruptcy filing forms, be sure you are being 100% honest. Providing misleading or untrue information on your bankruptcy forms can lead to case trustees to believe you are attempting to commit fraud. If you accidentally forget to include something in your disclosure, your best recourse is to contact the trustee or your bankruptcy attorney right away to amend the error. This will show your case trustee that you are not attempting to mislead the court.

❷ DO NOT HIDE ASSETS

You will be subjected to an asset investigation when filing for bankruptcy. If you attempt to hide nonexempt assets from your case trustee or relevant creditors, you could be denied bankruptcy or even charged with fraud. This includes transferring assets around to friends and family to keep them concealed. Examples of such assets include watercrafts, vehicles, properties, land, stock, IRA accounts, overseas bank accounts, and similar holdings that can be liquidated to cash.

❸ DO NOT FILE FOR BANKRUPTCY NUMEROUS TIMES IN OTHER STATES

A person who files for bankruptcy multiple times in different places can be arrested and charged with bankruptcy fraud. Because a person or business should not have to file for bankruptcy more than once within a long period of time, multiple filings tend to be a red flag among court-appointed bankruptcy trustees.

❹ NEVER ATTEMPT TO BRIBE A BANKRUPTCY TRUSTEE

Just like bribing a police officer or magistrate of the court, bribing a bankruptcy or court-appointed case trustee is considered bad practice, and may lead to charges of bankruptcy fraud upon further investigation. Bribery is taken very seriously by the courts.

Are you currently facing criminal charges for bankruptcy fraud in Indiana? Contact the Law Office of David E. Lewis at 317-636-7514 for aggressive criminal defense for white-collar criminal charges in Indianapolis, Indiana. We represent adults, minors, and juveniles all across the state.

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