Bankruptcy Fraud is a very specific type of fraud that can only occur when someone or some business, agency or corporation is filing for bankruptcy. To be considered fraud the person or entity must falsely report or attempt to hide, conceal or mislead the value or the ownership of items within the bankruptcy proceedings in order to face criminal punishment for bankruptcy fraud. This misstatement of assets is taken very seriously as it does have an impact on creditors and the general public whenever bankruptcy is filed.
Bankruptcy Fraud Penalties
Bankruptcy fraud is considered a serious criminal offense and most cases are prosecuted to the fullest extent of the law. Individuals that knowingly falsified or helped in the falsification of the document can also be charged with these types of crimes. Bankruptcy fraud charges are investigated by the Internal Revenue Service and are then sent to the Department of Justice for the actual prosecution.
Possible Penalties
- Jail time of up to 5 years
- Significant fines and fees
- Restitution
Bankruptcy Fraud Sentencing
The United States Department of Justice has provided estimates that almost one out of ten bankruptcy cases, either by businesses or individuals, has some sort of fraud involved. Typically there are far fewer cases than that seen in the court system as proving these cases can sometimes be very difficult. Often individuals investigated with these types of cases are able, through legal representation, to correct the error or omission and proceed through without the need for jail time. Restitution and fines will typically be included in the settlement if it is agreed upon instead of a criminal charge that requires bankruptcy fraud sentencing by a judge.
Bankruptcy Fraud Charges And Legal Help
Since there are options to possibly settle this issues prior to getting to a criminal court hearing, it is essential to get a criminal defense attorney familiar with bankruptcy fraud cases involved as soon as possible. Not only can they help with your defense and preparing documents for the IRS investigation, but they can also negotiate a settlement for you, if possible, without involving a criminal court proceeding.
- If you have been charged with Bankruptcy Fraud, Submit Your Case for a Free Review from a skilled Criminal Defense Attorney.
