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JoeLawyer, Attorney
Category: Bankruptcy Law
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Experience:  Attorney in the practice of Bankruptcy Law since 1996
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If you file bankruptcy in Texas and go to a mediation with ...

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If you file bankruptcy in Texas and go to a mediation with a creditor and this person agrees to the bankruptcy trustee to do certain things, in the mediationand lies during the mediation about what the balance is owed on real estate etc, and does not do them, is this bankruptcy fraud?


Generally the term "bankruptcy fraud" is applied to persons who file bankruptcy and falsify facts in their bankruptcy petition, hide assets, etc.

However, anyone (including a creditor) who is dishonest to the trustee or court can expose themselves to sanctions by the court or a potential fraud lawsuit.

If the debtor is involved in a mediation in which he or she is aware that a creditor is being dishonest, he or she should generally point out that dishonesty to the trustee or court through his or her attorney.

I don't know if this answered your question, so if not please let me know.

I hope this helps and a positive feedback is always appreciated if this was useful to you.


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Customer: replied 9 years ago.
Reply to Joseph Ross's Post: If in the mediation the lie is believed at that time, by the trustee, arbitrator and all involved, and then an aggreement is signed that no one will sue the other and etc, including no one will sue another after this mediation for fraud, and THEN it becomes very obvious to everyone that it was a lie, does the aggreement still stand that no one can sue the other for fraud??