Understanding Bankruptcy Fraud, From A Staten Island Bankruptcy Attorney

Bankruptcy, debt, Debt Relief / By / April 14, 2020

 

If you are thinking about filing bankruptcy in Staten Island, you probably have heard many misconceptions about the personal bankruptcy process. One of the most common misconceptions that people hear about are that all debts are dischargeable in bankruptcy, Most debts are dischargeable, however there are some debts that are deemed “non dischargeable.” Debts that are non dischargeable in bankruptcy, include alimony child support, some tax debt, and student loans.

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Another type of debt that is non-dischargle in bankruptcy are debts incurred by bad conduct. Bankruptcy courts call this type of non-dischargeable debt fraud, misrepresentation, embellzement, larcey or wilful and malicious injury. In this article, we will explain what bankruptcy Fraud is. If a debt is found to be fraudulent, it may be exempted from your bankruptcy case. Bankruptcy Courts do not want individuals committing fraud to benefit from the bankruptcy protections. By not allowing fraudulent acts to be discharged, the bankruptcy courts believe that it will prevent individuals from not paying back their assets that they obtained through an illegal manner.

What to Know About Fraud or Other Bad Acts If You Plan to File Bankruptcy  

If you can’t pay your bills and are planning to file bankruptcy, it is important to understand that some acts even if dont by accident can be construed as fraudulent. Some of these acts that individuals need to be careful of before they file bankruptcy are paying off debts before filing bankruptcy. For example, if you choose to pay back a good friend or family member who gave you money  just before filing the bankruptcy case. Many individuals believe that they should pay their friends and relatives back from an ethical standpoint. Unfortunately, to the bankruptcy court this can look like fraud. Paying off some creditors and not others, just after consulting a bankruptcy lawyer, can look suspicious.

Further, using your credit cards and spending right before your bankruptcy could be deemed suspicious.  Most individuals who file bankruptcy don’t know that anything filed within 90 days of filing your bankruptcy can be deemed non-dischargeable.  In some cases, spending for basic living necessites such as food or groceries may be okay. If you plan to make luxury purchases on your credit cards right before filing bankruptcy, your case will go under scrutiny and could potentially lead to a dismissal of your bankruptcy case. If you are unsure whether your acts have constitued fraud, it is always best to consult an expert Staten Island bankruptcy. A bankruptcy lawyer can help you navigate the bankruptcy rules to ensure that you won’t be introuble if you choose to file bankruptcy.

Call Karra L. Kingston Esq. for an Experienced Staten Island Bankruptcy Attorney

Filing bankruptcy is a difficult decision. Bankruptcy rules and laws can be extremely complicated. If bankruptcy fraud or ntentional fraud is involved, this can lead to severe penalties against you. If you have more questions about the bankruptcy process and how it may impact you, contact one of our bankruptcy lawyers today. Karra L. Kingston Esq. helps individuals in Staten Island, New York and New Jersey file bankruptcy.