Last Updated on: 12th October 2023, 06:23 pm

The New York court system defines bankruptcy fraud as concealing your assets during bankruptcy or making a false account or claim. Whether you destroyed or concealed assets, you could face up to five years in prison, which is why you need a great lawyer who understands this field of law. To knowingly or willfully lie shows willful intent, and this could lead to a conviction. You have to be so careful!

The Difference between Bankruptcy Fraud Lawyers and a Bankruptcy Lawyer

With a bankruptcy fraud lawyer, they have the intention of defending you from a criminal charge. Meanwhile, a bankruptcy lawyer simply wants to get a petition for bankruptcy approved. One defends you from criminal charges while the other moves the process of bankruptcy forward. You only need to call a bankruptcy fraud lawyer if allegations have arisen of bankruptcy fraud. Regular bankruptcy lawyers cannot act as a bankruptcy fraud lawyer in most cases because they’re not equipped to defend you in this field of law.

How the Investigations Take Place

Under most circumstances, people will know that they are being investigated for bankruptcy fraud. In most cases, they will call a court hearing to determine if bankruptcy fraud has taken place. They don’t typically do this in secret. Many times, the FBI will investigate allegations of this charge, but you do have cases where the IRS will investigate. Largely, it depends on the circumstances. Before you speak directly with law enforcement, you should first speak with a lawyer because you want to ensure that you don’t say something that they could take out of context to use against you.

Bankruptcy Fraud: Is It a Federal Offense?

In truth, bankruptcy fraud encompasses a variety of different crimes, but the most common charge that people get is called 18 USC 152. This is normally known as a scheme that had the intention of frauding the courts with a false petition for bankruptcy. Understand, in some cases, all the statutes could combine to convict you of this crime.

Concealment of Assets

Fraudulent concealment happens when someone going through a bankruptcy makes the claim that they do not have the funding to cover their bills or their debts. This happens whenever someone claims that they don’t have the money when they, in fact, do have the money. In addition, people other than the one filing for bankruptcy could get charged if they aided or abetted the individual.

What are some of the penalties that you could face for this crime? Under most circumstances, the most time that you will face is five years maximum, provided it isn’t in conjunction with other crimes. For example, let’s say that the fraud committed involved mail fraud or wire fraud. In these cases, you could see a drastic increase from five years up to 20 years in prison. Having a knowledgeable lawyer on hand can help you to lower the sentencing to a more agreeable sentencing.

More Than Criminal Charges

Bankruptcy fraud comes with more than criminal charges. In many cases, you could face civil lawsuits as a result of angry creditors. As a result of a successful bankruptcy fraud charge, they could sue you in the federal and state courts, which adds to the punishment.

Corporate Bankruptcy Fraud

Maybe you have been charged with bankruptcy fraud as a result of performing actions for a corporation. Perhaps you didn’t even realize that it classified as bankruptcy fraud. To get this charge, you have to have willfully committed deceitful actions. A corporation can get the charge based on how the people acted. In addition, simply because you weren’t aware of the employee’s actions won’t be enough to defend you in the courts.

No matter what your situation, you should speak with a lawyer as soon as possible because they will be the best equipped to help you fight these charges and get a lower sentencing. If you have been charged with bankruptcy fraud, you need a skilled attorney who understands how to adequately defend you from these charges. It will mean the difference between getting convicted and successfully defending yourself from these charges and having the maximum sentence put against you.