Lying about income on your Chapter 7 or Chapter 13 bankruptcy filing in Littleton, Aurora, or Centennial is a bad idea. You might think you’ll “get away with it,” because you’re not reporting a small amount of income. You will likely get caught. Even people who have received their bankruptcy discharge get caught years later. Bankruptcy fraud is no laughing matter, and it can be simple to commit, even without knowing. Don’t try to file for bankruptcy on your own. The Colorado bankruptcy court advises people to consult an experienced bankruptcy attorney in order to avoid errors and to get the best fresh start possible. Let’s take a closer look at bankruptcy fraud:
Celebrities Commit Bankruptcy Fraud:
In recent news, Teresa and Joe Giudice (stars of the reality show Real Housewives of New Jersey) have been charged with committing bankruptcy fraud. They confessed in a federal court that they neglected to list some assets and income in their bankruptcy filing. Because they have many sources of income from personal appearances as celebrities, and several businesses, they didn’t list some of their income, which is bankruptcy fraud.
How Bankruptcy Fraud is Committed
When you file for bankruptcy, you will fill out a lot of paperwork. This paperwork will require you to list your income, debts, and assets. At the bottom of the paperwork, you will sign your name, which states that all the information you provided is correct. You will sign your name under penalty of perjury. If you lied or neglected any of your income, assets, or debts, you have committed a crime. You might think you won’t get caught, but bankruptcy trustees know what they are doing. They are highly skilled sleuths who are used to spotting lies and can see a red flag almost instantly.
The Consequences of Bankruptcy Fraud
If you get caught committing bankruptcy fraud, you could go to jail. You will also be ineligible for filing bankruptcy in the future, and you won’t get your current debt discharged. Altogether, lying about your finances in a bankruptcy case is never a good idea. So, don’t lie about your income on paperwork, don’t transfer property or other assets to a friend or relative before filing in order to protect it, and don’t fail to disclose lawsuits. You will get found out, and you will be charged for committing bankruptcy fraud in Parker, Highlands Ranch, or Denver.
Why People Commit Bankruptcy Fraud
Money is an enormous source of insecurity and worry. People who commit bankruptcy fraud aren’t usually trying to play the system. Usually, they’re scared. They move assets around because they’re afraid they’ll lose them. This is why it’s important to realize why bankruptcy was created. The federal government isn’t looking to take your property. Bankruptcy was created in order to help people struggling under the burden of debt. So, don’t be afraid of losing your assets. Contact an experienced bankruptcy lawyer who can look at your financial situation and advise you on the best course of action.
If you are thinking about not declaring some assets or income because you are afraid, don’t commit bankruptcy fraud: Instead, contact experienced Centennial, Aurora, and Greenwood Village bankruptcy lawyer Barry Arrington at 303-205-7870. He will fight to protect your assets and give you the best, fresh start possible.
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