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Author: Dominic Scacci Article source: http://www.articlealley.com/. Used with author's permission.
Before new bankruptcy laws, bankruptcy fraud was an issue. Some individuals decided that they didn't want to pay their financial obligations anymore, so they went to a bankruptcy attorney and claimed their debts were too much and so a petition would be filed.
Well now there are laws and certain restrictions that prevent bankruptcy fraud on many different levels. Here are those restrictions:
? Tax liens, fines, and penalties, drunken driving obligations, secured debts, spousal and child support claims, false claims and fraud claims with intent to deceive, debts not listed with the courts, and student loans cannot be discharged when filing bankruptcy.
? If you are a business, debts incurred while committing forgery or fraud cannot be filed let alone discharged under bankruptcy laws.
? Also, no debts that have been incurred as part of punitive or statutory damages will not be considered for bankruptcy and will not be a part of the reported debts.
In turn, Bankruptcy fraud is considered a crime and a very serious one. Offenses such as the concealing of assets, conflicts of interest, destruction or concealment of documents, false declarations or claims, fixing fees, and falsification of bankruptcy forms are all very serious offenses and are considered perjury. Now if someone files multiple claims, that is not necessarily considered criminal, but may violate certain aspects of bankruptcy law. But if one does file multiple claims, the statutes concerning bankruptcy fraud may be concerned with the mental state behind those actions.
Certain laws have been put into place to avoid these actions. One of the laws concerns credit counseling prior to the bankruptcy petition being filed with the local bankruptcy court. This is so a credit counselor can certify that the debtor is eligible to file bankruptcy and that there are no other options available for that individual.
So now you can see why certain laws have been put into place in order to avoid fraudulent actions in bankruptcy court. These regulations not only protect the system, but the individual for being charged with criminal charges such as perjury. If the doorway is taken away, the potential offenders can't walk through it.
Don't get caught filing a fraudulent bankruptcy claim. Go to www.getlawyeradvice.com to find a lawyer near you who can help you file the right way.
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