Although many people have heard the word “fraud”, most people could not tell you what actions would be considered fraudulent. When it comes to the bankruptcy process, fraudulent actions may occur when you least suspect it. In fact, it isn’t uncommon for honest people to commit an act of bankruptcy fraud simply because they don’t understand the process.
It might seem unrealistic that someone would unknowingly commit bankruptcy fraud, but it does happen. Typically, these cases involve failing to report accurate information about debts, assets or income. The bankruptcy process requires full disclosure of these details and any misinformation could be viewed as suspicious in the eyes of the bankruptcy court. While there are a fair number of people who knowingly hide assets, conceal information about income or fudge details about their debts; other people simply make a mistake. Other fraudulent actions include filing in multiple jurisdictions, using false information, or failing to report changes to personal or financial information.
Bankruptcy fraud is a serious offense and one that is not handled lightly by the courts. If you are suspected of bankruptcy fraud, your case is likely to be dismissed. Further, you could be charged with large fines and even face imprisonment. Before filing for bankruptcy it is important to consult with a Fort Worth bankruptcy attorney about your case. They can help you understand the process and prevent you from making a costly mistake.