How To Avoid Accusations Of Fraud When Filing A Bankruptcy Petition

With bankruptcy, all you want is a fresh start. You're tired of receiving harassing phone calls and you simply want the creditors to leave you alone. However, while pursuing bankruptcy, it's important to not do anything that might be perceived as fraud. Fortunately, a bankruptcy attorney can help you avoid doing this.

Failing to List Your Assets 

When you are filing for Chapter 7 bankruptcy, you must list all of your assets so they can be liquidated to pay off creditors. You might be tempted to omit an asset because you hope that doing so will allow you to avoid having the asset sold.

However, you might be accused of fraud if it is discovered that you were hiding the asset. A bankruptcy attorney can help you list all of your assets and can also help you determine if there is a way that some of your assets can be considered exempt, such as a personal vehicle.

Transferring Property

You might decide to transfer a property to another individual without realizing that this can also be considered a form of fraud. If you give money to a friend or family member because you owe them money, there's a risk that you might b forced to pay the money back.

Destroying Documents

You should keep all financial documents that are relevant to your case. In an attempt to get more organized or to destroy clutter, you might destroy documents that you believe you no longer need. However, this can be misinterpreted by the courts as an attempt to commit fraud. 

Making False Statements

When you make any statements during the proceedings or in the paperwork, this can be considered a form of fraud. However, you might make a statement that you believe to be true that ends up being false. Therefore, you'll want to work with an attorney who will thoroughly research the facts of the case.

Fortunately, if you are open and honest with your bankruptcy attorney, you will be able to avoid being accused of fraud. While some cases of fraud are actually accidents, in most cases, an individual accused of fraud is actually committing fraud.

An attorney will make sure that you don't forget to add anything to your bankruptcy filings and can have your filings amended. When working with an attorney, you may be able to save time and money and you can also reduce the odds that your bankruptcy petition is thrown out.