Bankruptcy is a major life changing event. Though it might not seem like it at first, it is a positive step in the right direction. It’s a commitment, not only to yourself to build a brighter financial future, but to the bankruptcy court and your creditors. And like all big commitments, there are guidelines and things required from you – legal requirements that if not met, could get you into trouble.
Bankruptcy guidelines and obligations are one of the most important reasons you must choose to work with an attorney when filing for bankruptcy. Even a simple misstep during the bankruptcy process could result in the denial of your bankruptcy, or worse – it could lead to accusations of a crime.
There are numerous examples of what happens when people break bankruptcy laws. The court system takes these things seriously and the penalties are harsh. The best thing you can do is to work with a bankrutpcy attorney who knows the laws, understands how they apply in your case, and helps you manage the filing process to your advantage.
Filing for Bankruptcy is a Complicated Process
The court judges you by your bankruptcy application. They expect it to be complete and correct, and provide an all-inclusive picture of a person’s financial situation. Not only must you include all of your debts, you must also give the court information about your assets. In order for bankruptcy to be successful, you must turn over your entire financial situation to the court.
The reason the court has created strict bankruptcy laws is to prevent abuse, while still providing people with an opportunity to improve their financial situation. If you submit information, intentionally or unintentionally, that is incomplete or incorrect, you could lose this opportunity.
Filing for bankruptcy is not a simple process. It is possible for an individual to do it without assistance, but this can be very risky. If you’ve made the commitment to file for bankruptcy, you’ve already committed to improving your situation – the last thing you want to do is something that will make your situation worse!
Even Unintentional Errors Can Be Viewed as Bankruptcy Fraud
Everyone’s financial picture is different, which means the way to resolve financial problems is also different for everyone. Assuming bankruptcy is the best way for you to improve your financial situation, an attorney will provide the guidance you need to ensure you are doing everything correctly.
Breaking bankruptcy laws is a serious offense. Some people might assume the court will give them a pass or let them adjust or correct their application, but this is not always the case. As a matter of fact, a mistake could result in a more serious situation than you’re already facing – you could face accusations of bankruptcy fraud. Suddenly, what was a bleak financial situation ballooned into an investigation into whether you committed a crime!
What qualifies as bankruptcy fraud?
• Filing false information
• Knowingly concealing assets
• Filing a fraudulent petition
• Making false oaths
• Embezzlement
• Bribery
For more information about bankruptcy fraud, visit the IRS website page about Bankruptcy Fraud – Criminal Investigation.
To avoid a scarier situation than you face now, or to find out how an attorney can help you manage your current financial struggle, I can help. Mistakes can lead to criminal accusations and make it impossible for you to ever climb out of your financial situation. Contact The Georgia Bankruptcy Group. at (912) 417-5087 (Brunswick, GA); (912) 434-4057 (Hazlehurst, GA) or; (912)-574-2146 (Jesup, GA) to schedule a consultation or to discuss the details of your situation.
