In recent years the allegations of federal authorities of bankruptcy fraud has risen drastically. While many individuals may think that such an accusation is not a big deal or that they can cut corners by stepping outside of the bounds of the law, you should know that the United States government takes allegations of fraud in the bankruptcy process extremely seriously. Allegations of Bankruptcy which lead to conviction can have very serious consequences for the person convicted.
Federal Bankruptcy is a Federal Felony offense. The Federal Criminal Defense Lawyers at the Law Firm of Hofland & Tomsheck are available to assist you with your case and fight to protect your rights against these very serious crimes.
Most people understand that to be “bankrupt” means that you are insolvent. Once a bankruptcy proceeding is commenced, all of the valuable property, or assets, of a person are liquidated and divided by the Court in order to reimburse the identified creditors.
While bankruptcy is an important and valuable tool to protect some individuals or entities, taking advantage of the system to conceal your or hide income so that you can be absolved from responsibility for repaying debts by being less that truthful in application is a Felony Crime which carries Federal Prison time of up to five (5) years and fines which could total a quarter of a million dollars.
When individuals or corporate entities have more debt that they can effectively manage, they often turn to filing a for bankruptcy in a federal court known as bankruptcy court. In some cases, this is a necessary tool to reorganize or restructure. This process stops creditors from going against the bankruptcy filer directly. Instead, the creditors must go to through the bankruptcy court process for a judge to make a determination how many assets are available and which creditors get repaid in which order.
Bankruptcy court has strict rules however. When the person or entity filing for protection conceals the nature or amount of their assets, makes a false statement either in writing or verbally, destroys or hides records or offers or takes a bribe, such action or inaction can amount to bankruptcy fraud, a serious federal crime.
Bankruptcy fraud can be punished in more than one way. Such a punishment can be civil in nature or can be charged as a criminal offense. Civil penalties can be such things as the forfeiture or discharge of your rights under the bankruptcy code or a loss of exemptions. Criminal penalties on the other hand can be much more severe. A conviction for bankruptcy fraud is punishable by up to five (5) years in Federal Prison per offense, probation (meaning the Court mandates that the person sentenced adhere to rules and regulations during the period of probation and strict compliance with the supervision requirements of a Federal Probation officer) and fines of up to a quarter of a million dollars for each fraud allegation.
If you, or someone you know, are accused of Fraud crimes related to bankruptcy, contact our Las Vegas Federal Criminal Defense Lawyers today so that we can best advise you on how to proceed in your case. We are devoted and committed to getting you the best results possible in your case and protecting your rights. Contact us today for a free consultation.