When it comes to dealing with your debts in bankruptcy, there are a few important aspects you should know. One area that can arise intentionally is the area of bankruptcy fraud. Even some actions can unknowingly be considered fraudulent, leading to serious consequences. The best way to minimize your risk is through the power of knowledge.
When you file for bankruptcy you are required to provide the court a detailed look at your financial history. This includes your income, debt accounts, assets and funds. One of the most common areas of bankruptcy fraud is failure to report these details honestly. Whether you are misrepresenting your income, falsifying information about your debts, or hiding assets, all of these actions can be considered fraud.
Filing for bankruptcy in multiple jurisdictions, or including fraudulent debts, is also a problem that could pose serious risks. Fraudulent debts are those that are obtained illegally or through dishonest measures. Common examples of a fraudulent debt are lying about your personal information, credit score or income ability to obtain a line of credit, obtaining a line of credit under the name of another individual, or forging the signature of another individual in a jointly held debt.
Any of discovery of such actions is likely to lead to a case dismissal, and may even result in criminal charges. It is important you are honest about your information and adhere to the laws, making sure to consult with your Fort Worth bankruptcy lawyer about any changes to your financial situation.