What Constitutes Fraud in Bankruptcy?
A person may have their bankruptcy dismissed by the courts if they are found to have defrauded their creditors. Fraudulent actions against creditors are treated very seriously by bankruptcy courts. As one punishment, any actions that violate the terms of a bankruptcy can result in the outright dismissal of one’s bankruptcy case.
If you are unsure about whether you have done something that could jeopardize your bankruptcy, you should consult with a legal advisor about your situation. To discuss your bankruptcy options in further detail, contact the Joliet bankruptcy lawyers of Law Offices of Stuart B. Handelman, P.C., by calling 815-722-2201 today.
Defrauding a Creditor
If a person is caught defrauding someone they owe money to, then their case may be rejected by a bankruptcy court and they are likely to face punishments from that creditor for their dishonesty. The following actions may be regarded as suspicious or even illegal by bankruptcy courts:
- Moving property or assets to another person’s account just before bankruptcy
- Intentional misrepresentation of personal information when filing for bankruptcy
- Intentional misrepresentation of financial information when filing for bankruptcy
- Spending money on luxury items after insolvency was obvious
These sorts of actions can easily result in the dismissal of a bankruptcy case and potential action against the debtor from the creditor.
The bankruptcy process can seem complicated and overwhelming, making it easy to overlook potentially costly errors. To ensure that your case is handled correctly, contact the Joliet bankruptcy attorneys of Law Offices of Stuart B. Handelman, P.C., at 815-722-2201.