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White collar crime

Posted on Jan 22, 2016 by in White collar crime |

Exhausting all possibilities to pay off their bills and debts comes as a shock and leaves most of individuals feeling desperate. Filing bankruptcy is the only solution they have at that point. Fortunately, bankruptcy laws are constructed as a helping hand to the debtors and should enable discharge of all or most person’s debts all together with providing a chance for a new star.

Though bankruptcy offers many benefits, it also imposes some risks and a huge responsibility. Whole lots of things are at stake. Knowing this, breaking of any law during bankruptcy process implies a long – term sever consequences. Bankruptcy frauds can be civil wrong, but frequently debtor’s fraudulent actions fall under the jurisdiction of the criminal law. If you want to know more about bankruptcy attorneys dallas  please visit our page.

02f390c6-81b4-43ac-9c72-12d116fd0acfConcealing assets is probably the most common type of bankruptcy fraud. Bankruptcy estate is an official document proving the total amount of debtor’s property. In order to hide real inventory and try to keep the full value of it during bankruptcy process, individuals often submit hide or undervalue their property, convert cash into assets that cannot be identified during bankruptcy procedure or try to transfer some possessions onto some member of their family. Fraudulent disposal of property prior or after bankruptcy is also possible.

Another group of offences refers to false documentation when a person provides incomplete or false documents, makes false entries in a statement of account, falsifies written proves of affairs or fraudulently modifies claims of debts.

Refusing to answer trustee’s or creditors’ questions honestly during meetings and failing to explain debts accumulations or loss of property, are also included into wide range of abuses of bankruptcy process. Some debtors even try to bribe the court officials or anyone involved with theirs bankruptcy case.

Being aware of all the possible offences, creditors often try to protect their legal claims by early investigations, documenting of assets and their transfers, rechecking if some assets are left over or undervalued.


If it proves that the debtor has committed “white collar” crime, the court can impose civil or criminal penalties, depending of the nature of the offence. Civil penalties usually include dismissal of the case and rejecting of the debt discharge or loss of exempted property. Criminal penalties involve fines, probation or imprisonment up to 5 years of prison.

The best solution for the bankruptcy frauds is not to commit it, but if you’ve already put yourself into this serious situation, immediate consultations with an experienced criminal defense attorney are highly recommended.

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