Bankruptcy Fraud Questions
What is the definition of bankruptcy fraud?Bankruptcy fraud may be defined as a person falsifying assets in order to cheat creditors out of money they are owed. When people falsely declare bankruptcy and attempt to conceal their assets — which may include their finances, properties and investments — it is called bankruptcy fraud.
What is the Statute of Limitations on bankruptcy fraud?The bankruptcy statute of limitations refers to the time limit within which a report can be filed against a debtor for committing bankruptcy fraud. After the statute of limitations has run out, a bankruptcy debtor can no longer be charged with bankruptcy fraud. The statute of limitations for bankruptcy varies by jurisdiction from state to state, but usually, the bankruptcy statute of limitations for fraud is five years. To know more about the statute of limitations for reporting bankruptcy fraud in your state, you can ask a Lawyer on JustAnswer.
What is Chapter 7 bankruptcy fraud?Chapter 7 of the Title 11 of the United States Code (Bankruptcy Code) governs the process of liquidation under the bankruptcy laws of the United States. Chapter 7 is the most common form of bankruptcy in the United States. A debtor may file for bankruptcy under chapter 7, 11, 12, or 13 depending on the type of case he or she has. To know more about the different chapters in bankruptcy law, you can ask a Lawyer on JustAnswer.
Is it alright for a person to transfer some of his assets to another temporarily in order to declare bankruptcy?Any sort of concealment and cover-up including transferring of assets, however big or small the nature of assets, can amount to bankruptcy fraud. It needs to be stressed here that filing for bankruptcy means declaring the fact that one is “penniless” and cannot afford to repay any debts whatsoever.
What is the meaning of “fraudulent conveyance”?A quitclaim or transfer of a debtor's assets to a third party, for less than a reasonably equivalent value in exchange for such transfer, is considered to be a "fraudulent conveyance". In such cases, the creditors may file for claiming assets from such fraudulent transfers to recover their debts.
What are the penalties for bankruptcy fraud?Bankruptcy fraud is a serious federal offence. It can result in a fine up to $250,000 (USD) and/or up to five years in prison. If you have questions pertaining to bankruptcy fraud, you can ask a Lawyer on JustAnswer for quick and affordable answers that can help you with your bankruptcy fraud case.
How can bankruptcy fraud cases be reported?When you report a bankruptcy fraud case, it must be submitted in written form. A clearly written statement containing copies of any available documentation will expedite this process. If the concerned authorities deem the matter to hold prosecutorial merit, it will be referred to the appropriate law enforcement agency for investigation. You can ask a Lawyer on JustAnswer if you are not sure where you can report bankruptcy fraud in your state.
When faced with a legal situation regarding bankruptcy fraud, Chapter 7 of the United States Bankruptcy Code, Statute of Limitations, bankruptcy fraud penalties, fraudulent conveyance or reporting of bankruptcy fraud, asking a Lawyer is wiser than unwittingly taking the law into your own hands. There are Lawyers specializing in bankruptcy fraud cases who answer questions as Experts on JustAnswer. Many of them have answered these and other questions related to bankruptcy fraud laws. What’s more, getting an answer from Experts on JustAnswer is both fast and affordable.