Bankruptcy Fraud

Bankruptcy fraud is misrepresenting or falsifying assets, debt or property when filing for bankruptcy. The most common form of bankruptcy fraud with individuals is the concealment of assets, so they cannot be liquidated during bankruptcy proceedings. Additional forms of bankruptcy fraud include multiple filings (filing for bankruptcy in more than one state). As with all fraud charges, the intent of the defendant must be proven. This means that the individual must have consciously and willingly concealed assets or falsified information with the intention to defraud. Unintentional misrepresentation or accidentally forgetting to include income or assets should not result in bankruptcy fraud charges.

What the Federal Government is Doing to Fight Bankruptcy Fraud

There were 1.4 million bankruptcy filings in the U.S. in the fiscal year of 2009 alone, according to the U.S. Bankruptcy Court. With all of these filings, bankruptcy fraud is an area of concern. Fraudulent bankruptcy filings are seen to have a negative impact on the entire bankruptcy system, making it more difficult for honest citizens to take advantage of the many benefits that bankruptcy may have to offer. The detection, investigation and prosecution of bankruptcy fraud is therefore a key area of focus for the IRS (Internal Revenue Service) and the Department of Justice.

If you are under investigation by the IRS for bankruptcy fraud, have been arrested or have been contacted by federal law enforcement in conjunction with any type of federal crime, it is important to act as quickly as possible to consult with a criminal defense lawyer who can advise you on your rights and options. The steps you take now, particularly while there is still time to avoid formal charges, may have a significant impact on your reputation, career and freedom.

Now is the time to learn more about bankruptcy fraud. Click here to find a local criminal defense attorney.