When you file for bankruptcy, you are required to list all your property and any assets you have transferred to others within a particular time on your bankruptcy paperwork. Bankruptcy fraud can be many actions. But the one common factor is an attempt to pay a creditor less than what is owed by using the bankruptcy process.
While most people who file for bankruptcy are honest, hardworking people, some individuals are tempted to hide assets and property. Here are some examples, that could be considered criminal.
- Concealing a property or asset transfer prior to bankruptcy. For example, transferring the title of a house or car to a friend or family member to shield it from creditors.
- Transferring assets out of state to make them harder for creditors to reach.
- Hiding cash or bank accounts from the bankruptcy trustee.
- Paying someone to help hide assets from the court.
- Selling assets at significantly reduced prices to friends or family members prior to filing bankruptcy. For example, selling a car that is worth $15,000 for $1,500.
- Failure to list all assets on the appropriate bankruptcy schedule.
- Destroying documents.
- Providing a false document to the bankruptcy court or trustee.
The relief bankruptcy affords people is a powerful one and frees you from the burden of overwhelming debt. However, it does cost your creditors. Bankruptcy law attempts to mitigate this loss by establishing a bankruptcy ‘estate’ (i.e. – the remaining property) after your exemptions (i.e. – those assets which are kept to maintain a job and household).
Bankruptcy trustees are experts at finding undisclosed cash, property, vehicles, boats, jewelry, antiques, and collectibles. If you are caught trying to hide assets, the consequences are big. Anyone who makes a knowingly false statement in association with a bankruptcy filing can be assessed fines up to $250,000 and receive up to 5 years in prison. Your discharge will be denied, and you will be unable to discharge the debts you listed in a subsequent bankruptcy filing.
If you are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. Visit our website to learn more www.miamibankruptcy.com.