Bankruptcy fraud is a white-collar crime. While difficult to generalise across jurisdictions, common criminal acts under bankruptcy statutes typically involve concealment of assets, concealment or destruction of documents, conflicts of interest, fraudulent claims, false statements or declarations, and fee fixing or redistribution arrangements. Falsifications on bankruptcy forms often constitute perjury. Multiple filings are not in and of themselves criminal, but they may violate provisions of bankruptcy law. In the U.S., bankruptcy fraud statutes are particularly focused on the mental state of particular actions. Bankruptcy fraud is a federal crime in the United States.
Bankruptcy fraud should be distinguished from strategic bankruptcy, which is not a criminal act, but may work against the filer.
All assets must be disclosed in bankruptcy schedules whether or not the debtor believes the asset has a net value. This is because once a bankruptcy petition is filed, it is for the creditors, not the debtor to decide whether a particular asset has value. The future ramifications of omitting assets from schedules can be quite serious for the offending debtor. A closed bankruptcy may be reopened by motion of a creditor or the U.S. trustee if a debtor attempts to later assert ownership of such an "unscheduled asset" after being discharged of all debt in the bankruptcy. The trustee may then seize the asset and liquidate it for the benefit of the (formerly discharged) creditors. Whether or not a concealment of such an asset should also be considered for prosecution as fraud and/or perjury would then be at the discretion of the judge and/or U.S. Trustee.
Read more about this topic: Bankruptcy
Other articles related to "fraud":
... Mortgage fraud may be perpetrated by one or more participants in a loan transaction, including the borrower a loan officer who originates the ... unreputable stakeholders may encourage and assist borrowers in committing fraud because most participants are typically compensated only when a transaction closes ... During 2003 The Money Programme of the BBC in the UK uncovered systemic mortgage fraud throughout HBOS ...
... actually outmaneuvered in several provinces by electoral fraud, specially in Buenos Aires, where the fraud reached scandalous levels ... election of the 30s, and despite the blatant fraud, there was socialist representation in the Deliberative Council, integrated among others by Bronzini, who was characterized ... in Argentina as the década infame, electoral fraud and gerrymandering prevented Socialism to gain seats in the local Council and elsewhere ...
... Apart from fraud, there are several related categories of intentional deceptions that may or may not include the elements of personal gain or damage to another individual ...
... Bob tries to focus on his business and the children, but is shocked when he realizes that Brenda has feelings for him ... Because he still loves Viv, Bob fixed her up with Terry but panics when Viv asks him to visit in July 2009, assuming that she wants a divorce and has a drunken one night stand with Brenda's daughter, Gennie ...
... Bet Tzedek's Consumer Protection Unit litigates consumer fraud cases in a variety of areas, including home equity fraud, telemarketing, automobile financing, and health care marketing, and door-to-door sales ... throughout Los Angeles County to help residents recognize and avoid fraud ...
Famous quotes containing the word fraud:
“He saw, he wishd, and to the prize aspird.
Resolvd to win, he meditates the way,
By force to ravish, or by fraud betray;
For when success a lovers toil attends,
Few ask, if fraud or force attaind his ends.”
—Alexander Pope (16881744)
“There exists in a great part of the Northern people a gloomy diffidence in the moral character of the government. On the broaching of this question, as general expression of despondency, of disbelief that any good will accrue from a remonstrance on an act of fraud and robbery, appeared in those men to whom we naturally turn for aid and counsel. Will the American government steal? Will it lie? Will it kill?We ask triumphantly.”
—Ralph Waldo Emerson (18031882)
“Things gained through unjust fraud are never secure.”
—Sophocles (497406/5 B.C.)