Sometimes, financial struggles can go to our heads and cause us to make decisions we wouldn’t normally make. In one news story, a man kept his assets a secret after filing for Chapter 7 bankruptcy. This man owned two jewelry stores that were hurting, and stated that all of his jewelry was sold or dismantled. A trustee eventually found out that the man concealed his assets from the court, and he was arrested. In an interview with the man, he said he wasn’t trying to break the law, but was just trying to make a living and pay his bills. He could have been misinformed about parts of the bankruptcy code, and went too far with his actions. Unfortunately, his actions led to bankruptcy fraud. In Aurora, Littleton, and across Colorado, any time someone conceals assets from a bankruptcy trustee, it’s considered a type of bankruptcy fraud.
What is Bankruptcy Fraud in Highlands Ranch?
According to the bankruptcy code, 18 U.S. Code § 157 – Bankruptcy fraud is:
“A person who, having devised or intending to devise a scheme or artifice to defraud and for the purpose of executing or concealing such a scheme or artifice or attempting to do so—
- files a petition under title 11, including a fraudulent involuntary petition under section 303 of such title;
- files a document in a proceeding under title 11; or
- makes a false or fraudulent representation, claim, or promise concerning or in relation to a proceeding under title 11, at any time before or after the filing of the petition, or in relation to a proceeding falsely asserted to be pending under such title, shall be fined under this title, imprisoned not more than 5 years, or both.”
Unfortunately, bankruptcy fraud can be committed unintentionally, especially if someone is trying to file bankruptcy on his or her own. There are too many pieces of bankruptcy that someone can misunderstand or not even know about, which is why it’s important to have an experienced bankruptcy attorney at your side.
Filing for Bankruptcy Requires Honesty
Attorneys in the news story state that a debtor receives bankruptcy protection if he is honest about his assets. Some examples of hidden assets include undisclosed income, transfers of money or other property to relatives, or property that was recently bought. Filing for bankruptcy requires you to be trustworthy, but it doesn’t require you to be an expert at every piece of the bankruptcy code. That’s what a knowledgeable bankruptcy lawyer is here for.
Why You Need an Experienced Bankruptcy Attorney in Lone Tree
Bankruptcy fraud can be scary and is taken very seriously. You can avoid risking bankruptcy fraud by filing for bankruptcy with me. I have been a bankruptcy lawyer for more than 25 years, and I am an expert at the bankruptcy code. I will ensure that your filing is handled honestly and thoroughly. Contact me today for a free initial consultation if you are thinking of filing for Chapter 7 or Chapter 13 bankruptcy.
If you are wondering about bankruptcy fraud and want to get a fresh financial start in Highlands Ranch, Lone Tree, or Englewood, call now to request your free consultation meeting with Barry Arrington, a Christian bankruptcy attorney at 303-205-7870 or submit the “Get Help Now” form to begin your journey toward financial freedom.