Bankruptcy Fraud Penalties
Find out the all of the different penalties that can result from bankruptcy fraud.
When you face the daunting task of filing for bankruptcy, there are many parts of the bankruptcy process that you will need to educate yourself to reduce the risk of fraud penalties. You first will have to decide which chapter to file and how you can perform this process accurately. When you are filing for bankruptcy you have to be completely honest about all of your finances when you file. If you are found to be dishonest on any forms by withholding information, or misrepresenting your finances, you are going to face bankruptcy fraud penalties. Bankruptcy fraud is a serious offense that carries many different types of repercussions.
Bankruptcy fraud penalties can be pretty serious, and greatly affect your quality of life. Bankruptcy is sometimes considered a gift from the government. This is an allowance that gets you out of trouble with your creditors and allows you to start over. This helps you repair your credit and start living fiscally. However, if you purposely lie about your finances in your bankruptcy application, you can look forward one of several bankruptcy fraud penalties.
The first penalty that you can expect when you complete bankruptcy fraud is the dismissal of your case. This is one of the lesser bankruptcy fraud penalties that you can receive. You will lose the time and effort that you have put into your bankruptcy proceedings, along with the money that you have spent. This is an easy penalty to bounce back from when you could potentially face criminal prosecution for your bankruptcy fraud. This can result in spending some serious time behind bars. The last one of the penalties that you will most likely incur is a monetary penalty. This is one of the more minimal penalties, and you’ll just have to pay a penalty to the court.
These are a few of the bankruptcy fraud penalties that you could potentially be facing if you purposely leave out information in your bankruptcy proceedings. This is why you should take every care to make sure that you give the most accurate account of your finances. If you accidently leave something out the court will rarely prosecute that, but if it can be shown that you were purposefully committing fraud then you could be in serious trouble.