The Problem With Attempting Bankruptcy Fraud

Many people thinking of how to settle their debts eventually get around to thinking of filing for bankruptcy. One reason is that they think that they will be able to file for bankruptcy and still hold on to many of their valuables by hiding them.

This, however, would be bankruptcy fraud which is a federal offense. And if a person deliberately manipulates his assets, debts, and so on during the filing – he can be convicted of bankruptcy fraud and possibly go to jail.

A lot of cases of bankruptcy fraud occur because the person filing attempted to conceal his assets. An example would be transferring substantial amounts of money from your bank account or investment portfolio to a family members account in order to hide it.

In cases like this where you are unsure of the legal ramifications of moving property or sums of money prior to filing for bankruptcy, talk to your lawyer.