With the downturn of the economy in recent times, people are starting to have financial troubles. This might lead to some realizing that they aren’t able to make ends meet. Some might decide that they need to file for bankruptcy. If you’re in this position, remember that you must be fully honest when you’re filling out your paperwork for the petition.
It is possible that a person who files for bankruptcy might be tempted to try to withhold or hide assets that the court might liquidate. This can lead to the person being charged with bankruptcy fraud if the court finds out about it. For this reason, honesty is always the best policy.
A person who is facing bankruptcy fraud charges is looking at five years of imprisonment and up to $5,000 in fines for each incident. In order to successfully convict a person of bankruptcy fraud, the prosecutor would have to show that you intended to commit the crime. In this case, the criminal act would simply be concealing assets.
Each bankruptcy case requires the petitioner to list out assets. These are classified as either exempt or nonexempt. Most people won’t try to hide exempt assets because they aren’t going to be liquidated by the court. Some might even think that they can give away nonexempt assets prior to filing, but even this is illegal in many cases.
If you’re facing accusations of bankruptcy fraud, make sure you evaluate the case against you. This could give you an idea of how to handle the charges. Just remember that your goal is to poke holes in the prosecution’s case so that you can introduce doubt into each juror’s mind.