Bankruptcy Services Help You Avoid Committing Fraud

What’s worse than being broke? Being broke and being in jail. Bankruptcy services not only deal with the cash-strapped, but with those who have committed fraud. Lying to the courts, whether intentional or not, will lead to hefty fines and years behind bars. It isn’t worth the risk, and even the cleverest of companies and individuals have eventually been caught out. To avoid making a bad situation worse, here are some of the more common fraudulent claims that should be avoided at all costs.

Spending Spree

When people finally decide to take the plunge and start really researching bankruptcy services available, there comes the inevitable temptation to unleashing a spending demon for a couple of weeks. After all, if the debt is just going to be cleared anyway, why not squeeze in a new television, a designer handbag, or a cruise to Hawaii. How will the judge ever know? While it is possible to get away with such unscrupulous actions, more often than not you will get caught. The penalty for fraud can be steep, costing you thousands (a debt which will not be discharged) and even landing you in prison for several years. And it isn’t too hard to be caught out in this kind of scam either. Any spike in spending or unusual purchases will trigger a red flag, even if it is just a one-time occurrence.

Destruction

If you’ve gotten yourself into so much debt that you need the aid of professional bankruptcy services, you may already have a slight destructive streak. You may get it into your head that permanently misplacing or allowing important financial documents to accidentally fall into the shredder might be a way to avoid some backlash. Again, purposely destroying documents related to the case or refusing to present them is considered fraud. Remember that you are likely not the only person with the documentation and more likely than not, the truth will eventually be dug up by a creditor, bank, or even an acquaintance. With most companies favoring digital methods, recovery of lost paperwork is as simple as the click of a mouse.

Concealment

Similar to destruction, hiding assets or finances (including foreign bank accounts, income, or other investments) is fraudulent behavior and subject to prosecution. In some cases that deal with smaller amounts of assets, people may even be unaware that they must declare these as well, which is why it is always recommended to hire professional bankruptcy services to avoid issues such as this. An attorney can help you understand exactly what needs to be revealed in court and what information you cannot withhold in front of a judge.

Multiple Filing

Yes, you can file more than once according to most bankruptcy services. However, there is a limitation on the overall number as well as how many years can pass before you are eligible again. Filing in two or more different states at once or using aliases to try and save your assets or continually pass of debts will quickly land you in prison though. Filing for bankruptcy shouldn’t be used to abuse the system.