Misrepresenting Assets – Bankruptcy Fraud

Residents Face Serious Bankruptcy Fraud Charges in York County

shutterstock_140759692For a person or business who is unable to pay their debts, there are several types of bankruptcy, which unfortunately makes the paperwork and filing process confusing. If you misfile, or misrepresent your assets or ability to repay your debts, even by accident, you could face bankruptcy fraud charges.

If you file for bankruptcy of your business, you could file for a strategic bankruptcy, which is not illegal, but a filing of insolvency that serves a specific business purpose, such as protecting your storefront from creditors while you handle a long-term lease on an unprofitable business. While this is not specifically illegal, filing in this way is a delicate balance and it is easy to fall over the edge and end up with bankruptcy fraud charges.

Defending Charges of Bankruptcy Fraud in South Carolina

Bankruptcy fraud can occur when:

  • An individual conceals their assets by purposely failing to list every asset knowing that a creditor cannot liquidate their property.
  • An individual is involved in a petition mill, in which someone poses as a financial advisor and files hastily prepared bankruptcy in the victim’s, often times unbeknownst to the victim.
  • An individual files bankruptcy in multiple states using their real name and information, false names and information, or a combination of the two. They then list some of their assets, but not all, so liquidators will not seize all their assets.

I Misrepresented Some of My Assets and Now I’ve Been Charged with Bankruptcy Fraud!

If you face bankruptcy fraud charges, you will need legal help as soon as possible. The South Carolina bankruptcy and bankruptcy fraud charge defense attorneys at the Strom Law Firm understand the complexity of federal white collar charges like bankruptcy fraud, and will defend your rights to your assets in court. Contact us today for a free, confidential consultation on your case.

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