FBI Warns Against Bankrupcy Fraud

My Bankrupcy Law Network colleague Rachel Foley has written a useful article on the Bankruptcy Law Network blog that brings to light a problem that many debtors (and perhaps many debtors' attorneys) don't think about too much – bankrupcy fraud.

In my practice I observe that when they come to meet with me many prospective bankrupcy filers are angry – angry at harassing creditors, angry at their employer for cutting hours or jobs, and angry at some of the rules that apply when one files bankrupcy. Despite what some in Congress may say, no one wants to file bankrupcy and I have met many very nice, reasonable people who feel that they played by the rules and now they are going to have to start all over at age 40, 50 or older. The net result of this anger sometimes is a sense of "us against them." Sometimes this manifests itself in an attitude that the debtor will follow the rules mostly but who is going to harm if they don't reveal a cash payment to a relative or the transfer of an old car to a brother. As Rachel points out in her fine post, this sort of an attitude can really get you in trouble. When you sign your name to a bankrupcy petition, you are declaring under oath that the information contained therein is truthful and accurate. If you leave something out intentionally you may not get caught, but, then again you may. The U.S. Trustee and the U.S. Attorney have been known to prosecute debtors to set precedent. For more information on Bankrupcy Fraud visit http://www.bankrupcy-alternative.com

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Bankrupcy Alternatives offers a wealth of information about bankrupcy. We also offer several programs that serve as an effective alternative to filing a BK.