Bankruptcy Fraud Can Result in Serious Penalties

The Bankruptcy laws are meant to give an honest debtor a fresh start, but not a head start.  The Bankruptcy laws protect honest debtors who comply with the numerous requirements and substantially punishes those persons who abuse the system and try to defraud their creditors.

The Federal Bankruptcy Code is written by Congress and administered by a Federal Bankruptcy Judge and representatives from the Department of Justice.  If a debtor is less-than-truthful regarding his or her financial information, there are many significant consequences.  The debtor's case may be dismissed, or the Court could deny a discharge in the case.  In a Chapter 7 Bankruptcy, this is a very serious consequence because the debtor will remain liable for all debts while losing any assets turned over during the case.

In more serious cases, where someone clearly intended to defraud creditors, the debtor may be investigated by the Federal Bureau of Investigation or the Internal Revenue Service Criminal Investigation's Bankruptcy Fraud Program.  The debtor may be charged with Bankruptcy fraud - a federal crime - and could face prison time depending on the severity of the abuse.  Most Bankruptcy fraud is first discovered by the Bankruptcy Trustee, but in many cases, the debtor is discovered after a neighbor, creditor, or ex-spouse reports the fraud.  The Department of Justice Trustee Program maintains a website to enable individuals to report Bankruptcy fraud.  It may not seem like a big issue, but failing to disclose assets, debts, income or expenses can substantially affect your Bankruptcy case, including criminal penalties.

If you are facing overwhelming debts, it is important to speak with an experienced Bankruptcy attorney and discuss your financial situation in full detail.  If you are honest and disclose everything properly, you can gain the advantages of the federal Bankruptcy laws and protect your assets and future.  The Law Office of Nicholas R. Westbrook can help facilitate this process.  Mr. Westbrook will carefully analyze your financial situation, diligently review your documents and ensure that everything is reported and filed correctly.  To schedule your free consultation, please contact the Law Office of Nicholas R. Westbrook today at (713) 893-6204.  We have convenient office locations around Houston and the surrounding areas.  Stop letting debt ruin your life.