How Fraud Can Ruin Your Bankruptcy Petition
Committing fraud is illegal. While fraud laws can vary state to state, committing fraud can lead to fines and possible jail time. Committing fraud, especially when you declare bankruptcy in Las Vegas, Nevada, is particularly heinous.
What Constitutes as Bankruptcy Fraud?
When you file for bankruptcy in Las Vegas, you are required to declare certain information to the court. A bankruptcy judge then decides what your assets are and how you owe.
However, if one commits one of the following acts when petitioning, such as committing perjury, concealing assets or destroying financial records, they are committing fraud. Please note, this is not a comprehensive list. There are other types of fraudulent acts.
Acts of fraud are judged on the intent. If one knowingly commits fraud, this is considered criminal. If one commits fraud and commits it unknowingly, it can be regarded as civil. Of course, each case is different. Make sure to discuss what constitutes as a fraud with a Las Vegas bankruptcy attorney.
Penalties of Committing Bankruptcy Fraud
· Revoke Discharge Rights
At the end of bankruptcy, creditors are no longer allowed to press collection actions against you. However, bankruptcy fraud can revoke these rights, which allows creditors to file lawsuits against you and repossess your property.
· Exempted Property is Now Non-Exempt
Exempt property such as one’s home or car can be repossessed by creditors if found guilty of bankruptcy fraud.
Criminal Bankruptcy Fraud Penalties
· Prison Sentence
The length of prison stay can range anywhere from a few months to five years per offense.
Fines are determined by the court and can be imposed along with jail time. In conclusion, if you consider being fraudulent when you declare bankruptcy, our Las Vegas lawyers suggest you don’t.
Always be honest. While you may lose some of your nonexempt property, remember you are declaring bankruptcy to help yourself.
Don’t shoot yourself in the foot. Get out of debt with our Las Vegas bankruptcy attorneys and live a happy life.
Need the Best Bankruptcy Lawyers?
If you are considering declaring bankruptcy in Las Vegas, don’t do it alone. At Luh and Associates Attorneys at Law, our lawyers in Las Vegas have the knowledge and expertise to help you get a debt-free life.
Contact Luh and Associates today for your free consultation.