{"id":286959,"date":"2021-01-11T15:27:58","date_gmt":"2021-01-11T20:27:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/what-is-bankruptcy\/bankruptcy-fraud.html"},"modified":"2023-12-12T15:51:50","modified_gmt":"2023-12-12T20:51:50","slug":"bankruptcy-fraud","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/what-is-bankruptcy\/bankruptcy-fraud.html","title":{"rendered":"What Is Bankruptcy Fraud?"},"content":{"rendered":"\n
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What Is Bankruptcy Fraud?<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Bridget Molitor, JD<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Bankruptcy fraud is any action taken in a bankruptcy case that doesn’t represent accurate information, which causes harm to another. To be convicted of fraud, you must have done something intentionally to gain an advantage during the bankruptcy<\/a> process. If authorities charge you with fraud due to an honest mistake, you can defend yourself to rectify the error.<\/p>\r\n

If the U.S. Department of Justice<\/a> charges you with bankruptcy fraud, federal law stipulates that you may be subject to fines of up to $250,000 (which are not dischargeable debt) and a potential maximum prison sentence of five years. These laws are part of the Bankruptcy Code, 18 U.S.C.<\/a><\/p>\r\n

Law enforcement will arrest you for these criminal charges, and the U.S. Attorney’s Office will review your case. Through a full criminal investigation, authorities will review your history for financial crimes \u2014 any further hiding or lying could lead to perjury charges<\/a>.<\/p>\r\n

Bank fraud is a serious white-collar crime<\/a>. You should contact a criminal defense lawyer immediately or work with your bankruptcy lawyer if they have defense experience with bankruptcy fraud cases.<\/p>\r\n

Examples of Bankruptcy Fraud in United States Bankruptcy Courts<\/h2>\r\n

There are many ways someone can commit fraud during their bankruptcy filing. Making an honest mistake can happen. It’s up to your attorney to prove your intent was not to break any bankruptcy law.<\/p>\r\n

Avoid Common Mistakes<\/h3>\r\n

It’s always better to be safe than sorry. You can avoid common mistakes by:<\/p>\r\n