Tag Archives: bankruptcy fraud

Top 4 Ways to Avoid Bankruptcy Fraud

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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 Lawyers Indiana 317-636-7514
Bankruptcy Fraud Lawyers Indianapolis Indiana 317-636-7514

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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FAQS About Bankruptcy Fraud in Indiana

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If you are planning to file bankruptcy in Indiana, be prepared to be investigated to a certain extent. That is because white collar crimes like fraud are all too common in bankruptcy filings, and must be prevented through comprehensive scrutiny. For this reason, bankruptcy petitioners are assigned a trustee who will look into their financial circumstances, including all assets, liens, loans, and more.

If you suspect that your recent bankruptcy filing might have been done incorrectly, and are now worried that you could be indicted for bankruptcy fraud, review these frequently asked questions to help clear up any confusion you might have.

Indiana Bankruptcy Fraud Attorney
A law book with a gavel – Bankruptcy law

What is Bankruptcy Fraud?

Bankruptcy fraud is a type of white collar crime that is penalized on a federal level, meaning it is a felony. Bankruptcy fraud occurs if a debtor A) hides their assets, B) lies or gives false information on their application, C) bribes a bankruptcy trustee, or D) is a habitual filer, and has filed many times in other counties. The most common action that leads filers to be charged with bankruptcy fraud is concealing, or transferring for the purpose of hiding, non-exempt assets from creditors or a trustee.

Will I Go to Jail if I Hide Assets During Bankruptcy Filing?

After a person is suspected by a trustee that they are hiding assets, or transferring them so they stay hidden, the trustee will begin to collect all evidence. From there, a civil lawsuit is filed against the person. Additionally, the person can lose their ability to file bankruptcy. In cases of more serious Bankruptcy Fraud, a person might be criminally charged by the U.S. Justice Department and the U.S. Attorney General’s office. If convicted, they can be ordered to pay up to $250,000 fines and spend up to 5 years in prison.

What Will Happen to Me if I Forgot to Include Something in My Bankruptcy Disclosure?

Because the process of filing bankruptcy is serious, it is important to do so with the help of a civil attorney. They will make sure all filings are done comprehensively and correctly. If you did yours on your own, but now fear that you forgot to add something, now would be the time to hire a civil lawyer for help with your application. They can set things straight for you in no time.

What Should I Do if I Am Charged With Bankruptcy Fraud in Indiana?

Call David E. Lewis, Attorney at Law at 317-636-7514 to get help with your Indiana bankruptcy fraud charges, today. Whether charged with fraud crimes or some other type of white collar crime, our Indianapolis criminal defense law firm offers free initial consultations to discuss the best strategies of defense for your case. Avoid the maximum penalties for your criminal charges by calling David E. Lewis, Attorney at Law, today!

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What is Bankruptcy Fraud?

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Bankruptcy is a type of legal protection for those who have no other choice but to start fresh, financially. The objective of Chapter 7 bankruptcy is to liquidate non-exempt assets and sort out as much debt as possible. However, the process of filing for bankruptcy can be complex, especially for those who are not keen to legal jargon and procedure. For this reason, many people are simply afraid to file bankruptcy out of fear that they might make a mistake and be audited for fraud. In fact, professional bankers recommend hiring an attorney to file for bankruptcy for the sole purpose of avoiding devastating errors that can lead to legal troubles.

But not to worry; unintentional bankruptcy fraud is not even fraud. It’s common error that can be resolved. If you make a mistake during the filing process, you will simply be informed and redirected. However, deliberate bankruptcy fraud is another situation; one that comes with serious legal penalties.

Continue reading to learn what constitutes bankruptcy fraud, as well as, the standard penalties for being convicted in Indiana.

Indiana Bankruptcy Fraud Lawyer
Indiana Bankruptcy Fraud Lawyer 317-636-7514

Bankruptcy Fraud is a White Collar Crime

Bankruptcy fraud falls under white collar crimes, which entails federal-level offenses typically dealing with large amounts of money. When a person illegally drains the revenue and profits of a business or local economy, they have committed a white collar offense. Accordingly, a person commits bankruptcy fraud by knowingly and intentionally hiding or altering information for the purpose of gaining a financial advantage. More specifically, bankruptcy fraud occurs if an applicant purposefully hides assets, secretly transfers assets to conceal them, gives false information, bribes court-appointed trustees, files multiple times in different courts, or all a combination of the above.

Most Common Types of Bankruptcy Fraud Crimes in Indiana:

➧ Providing False Information on Documents

➧ Hiding Assets from Liquidation

➧ Attorney Filing Incorrect Paperwork on Behalf of Client

➧ Intentional Discrepancies on Bankruptcy Petition

➧ Transferring Real Estate, Money, or Assets to Family Members

➧ Filing Multiple Cases in Separate States

➧ Using Stolen Social Security Numbers

➧ Filing a False Claim

➧ Destroying or Concealing Financial Records

➧ Giving or Accepting a Bribe

➧ Foreclosure Scams

State and Federal Bankruptcy Fraud Laws

Because it is a federal offense, if you are charged with bankruptcy fraud, you will face some serious penalties if found guilty. The common consequences are denial of bankruptcy, large fines, and of course, a criminal record. Here in Indiana, bankruptcy fraud is charged as a Level 5 Felony, which is punishable by up to 6 years in prison and $10,000 in fines. More serious crimes can be punished by up to 20 years in prison and $250,000 in fines.

Who to Trust for Skilled Federal Criminal Defense in Indiana

Call David E. Lewis, Attorney at Law, at 317-636-7514 if you have been charged with a federal crime in Indianapolis, or within the Central Indiana counties. Our law firm offers aggressive and experienced criminal defense for anyone facing bankruptcy fraud charges or white collar crime charges in Indiana. Don’t settle for an attorney that doesn’t have the drive. Attorney David E. Lewis will stop at nothing to protect your rights and preserve your freedoms. We also offer criminal record expungement services to help clean up your criminal history and improve your quality of life!

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