bankruptcy tenants in common

Bankruptcy allows an individual or a business to be cleared of all debts if it is considered that they are unable to repay their debts. When you commit bankruptcy fraud it is considered a federal crime. There are three ways to commit bankruptcy fraud.

One of them is concealment of assets. This is one of the most common types of fraud whereby the debtor hides his assets so that they are not liquidated. This usually occurs when he debtor is supposed to declare his assets during the declaration part of the bankruptcy process.  When a debtor fails to list all his assets or transfers ownership to friends and family or move the assets to an off-shore account, then they are committing bankruptcy fraud.

When you file for bankruptcy in more than one state, you are committing a this type of fraud known as multiple filings. This is also done so that the debtor can avoid liquidating his assets. Another form of multiple filings would be when the debtor files for bankruptcy under a fake name.

The third and worst form of bankruptcy fraud is petition mills. Here, the debtor may respond to an advertisement for a company that claims it will help tenants avoid eviction from their rental houses. The company will then take all the debtors details and charge high fees with they claim that they are protecting the debtor’s interests and preventing eviction. However, the harsh reality is that they have filed for bankruptcy, drained all the cash avenues and ruined the debtor’s credibility. If you are found guilty of committing any of these offences, you can be fined for an amount of up to $250,000 US dollars and/or five year prison sentence.

About the Author:

Mercy Maranga writes content on Finance and Debt Management. Visit her site here for more information on Finance and how to effectively Manage your debts. Bankruptcy

Article Source: ArticlesBase.com – Bankruptcy Fraud; Three Ways Of Doing It

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