Commony Bankruptcy Fraud Questions
A Sacramento bankruptcy attorney answers commonly asked questions on bankruptcy fraud.
If a debtor has been accused of bankruptcy fraud questions, he may have many questions about what it entails, what the punishments are, and what the valid defenses are. Here are a few common answers to the most common questions people will ask.
What Is Bankruptcy Fraud?
Bankruptcy fraud consists of misrepresenting statements, withholding documents, or destroying documents before a person goes through the hearing. If a person is declaring bankruptcy as a strategic move, which is uncommon for individuals, it may factor into the criminal court’s decision to decide if a person has committed fraud or not.
What Are the Grounds for Proof?
This is perhaps the most important bankruptcy is what a prosecuting attorney must prove. He must prove that the client intended to gain some advantage by withholding documents. A person merely being unable to find documents cannot be prosecuted for fraud.
What Are the Consequences?
Punishment for bankruptcy fraud can take the form of five years in prison and or $250,000 in fines. In addition, a person may be obligated to pay back any fraudulent debts canceled.
How Common Is Bankruptcy Fraud?
Business owners are more likely to be accused of bankruptcy fraud than an individual. Individuals do not normally declare bankruptcy more than once in their life.
If you would like more information on this topic or other bankruptcy topics, please contact our Sacramento office at 916.792.6025 or 1800.941.6730. We at Sagaria Law can connect you with one our our experienced Sacramento bankruptcy attorneys. We have bankruptcy attorneys located throughout California and Oregon to assist you with your bankruptcy questions. If you need assistance regarding a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, a cram down, stopping a foreclosure or wage garnishment, asset protection, discharging debt, etc. we can help! Please contact us to receive a free consultation or visit our website at www.sagarialaw.com to request an in-person consultation with an experienced bankruptcy attorney. We have an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting Sacramento.
