The Federal government takes bankruptcy fraud very seriously and imposes heavy sentencing.
Our bankruptcy fraud lawyers are here to help you protect your rights if you are facing these felony charges of bankruptcy fraud.
Being bankrupt is to be legally insolvent. All your property is liquidated and divided among creditors to pay off your debts.
When you file for bankruptcy in an attempt to conceal your assets in order to be released of all your debts by portraying yourself as being incapable to pay, you are committing a felony that carries a sentence of a fine up to $250,000 and/or five years in prison.
There are many types of bankruptcy fraud that the federal government may bust you for. Some common types of bankruptcy frauds are:
1) Concealment of Assets is when a person conceals some of their assets knowing that creditors can not go after what they do not know about.
2) Launching Petition Mills is a scheme that claims to help and advise tenants on how to avoid eviction. Once a tenant responds to this typing service, the typing service then takes the tenants name, and without tenant’s consent, files bankruptcy in the tenant’s name. The tenant thinks he/she is getting help, and the typing service is basically draining his/her savings, ruining his/her credit, and postponing the inevitable eviction.
3) Multiple Filings is when a person files for bankruptcy in more than one state using the same assets but leaving out some assets to protect valuables from total liquidation when debts are paid.
There are other types of bankruptcy fraud that the Feds can charge you with such as bustouts, bleedouts, pyramid scheme. If you are being charged with bankruptcy fraud, you need an experienced and knowledgeable defense attorney to help you.
The Los Angeles bankruptcy fraud attorneys at >Hedding Law Firm have a combined 75 years experience and our credentials are unmatched in the federal court system. We have handled many fraud cases involving bankruptcy fraud and have seen great results.
We strive to get the best results possible and protect your rights. Contact us for a free face to face consultation.