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Bankruptcy Lawyer & Avoiding Bankruptcy Fraud

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bankruptcy lawyer explains bankruptcy fraud

Bankruptcy fraud can be committed in a number of ways, and the penalty it carries is harsh. Debtors found guilty of fraud can face up to 20 years in prison. They may also be fined for up to $250,000. This alone should be enough to deter anyone from attempting it, but some debtors who are especially attached to their properties or who are unable to cope with the idea of paying all of their disposable income to their creditors for the next 3-5 years become overwhelmed and choose to act irrationally.

Knowing the details and risks of fraud is one of the ways to prevent debtors from making this grave mistake. If you’re unsure about filling out your bankruptcy paperwork, then it would be wise to consult a bankruptcy lawyer who can advise you. A bankruptcy lawyer will have the skill and experience to help you navigate your paperwork properly so that you won’t forget to list any properties or any other required information.

For more information on what constitutes bankruptcy fraud and how to avoid it when filing for your bankruptcy, read on.

What Makes Bankruptcy Fraud so Serious?

It is important to recognize, whether you have malicious intentions or not when filing, that declaring bankruptcy can leave your creditors at a severe loss. They will not be reimbursed for whatever outstanding debts you owe to them. If you try to commit fraud, you’re effectively stealing money straight from your creditors.

Types of Fraud

While “bankruptcy fraud” is just one offense, it can be committed in a few ways.

Debtors who attempt to conceal their assets are guilty of fraud. In this case, fraudulent debtors typically leave some of their assets off of their paperwork, meaning that the trustee assigned to liquidate their assets will not be aware of them.

Some debtors will transfer ownership of certain items to friends or relatives once they know they’ll be filing in an attempt to protect those assets. This is also a form of fraud and is punishable if discovered.

Other debtors will attempt to bribe the trustee appointed to liquidate their assets in an attempt to preserve some property.

Get Help from a Bankruptcy Lawyer and Avoid Fraud

While intent must be proven in order to convict someone of bankruptcy fraud, it is still possible to misrepresent yourself or your assets by accident. While this is unlikely, it is smart to seek the advice of a bankruptcy lawyer who can guide you through your bankruptcy process. With a bankruptcy lawyer by your side, you can be assured that you will not only avoid fraud, but you will also be ushered through your bankruptcy process as smoothly as possible.

Avoid the hassle and risks of filing for bankruptcy alone: call a bankruptcy lawyer at Groce & DeArmon, P.C. today. You can reach us at 417-862-3706.

Explaining Bankruptcy and Foreclosure Misconceptions

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Woman questioning myths about bankruptcy and foreclosure

Getting your home foreclosed may seem like the end of the road in your battle against debt. Although not everyone reaches this stage in their financial situation, it is still an important topic to be informed about in case you do end up encountering the process. Unfortunately, many people have become yielded to the information that is passed around through myths. At Groce & DeArmon, we took the time to address some of these common misconceptions about bankruptcy and foreclosure so that you will be familiar with what really happens.

MYTH: Missing One Payment Will Cause Foreclosure

Many people believe that failing to pay a single month of your mortgage will immediately lead to the bank taking your house away. However, this is not the case and is a myth surrounding bankruptcy and foreclosure. In Missouri, the foreclosure process typically initiates after about 60 days of neglected payments. Therefore, you have some time to take care of your missed payment if you fail to take care of it the first time. Nevertheless, just because you have more time than you may have imagined, this does not mean you should continue to put off your expenses. Waiting too long may put you in a situation where your house will actually get foreclosed.

Related Post: Should I File Bankruptcy Before or After Foreclosing?

MYTH: Contacting the Bank Will Hurry the Foreclosure

Another common fallacy about bankruptcy and foreclosure is that your attempt to speak with the bank will encourage them to take your home away quicker. Many people assume that the bank is eager to take possession of your home. The financial institution just wants the money that you agreed to pay for your mortgage, so taking your house away will essentially be the last resort for obtaining the money. In other words, it is OK to discuss your situation with the bank and ponder possible solutions for addressing your debt situation. Despite the lenders needing your money, they will typically be cooperative and help you make a plan for paying your expenses.

MYTH: When You Get Foreclosed, Everything Must Go

Yet another incorrect belief about bankruptcy and foreclosure is that you are required to give up everything in your home when it is taken away. This is, of course, not true since you are not paying a mortgage on your bed, refrigerator, and TV. These are all assets that you will be able to keep when your house is foreclosed, which may be a good opportunity to make some money through selling them. With that being said, anything that is permanently built into your home will have to stay as a part of the repossession.

Related Post: Keeping Your Home When Filing Chapter 7 Bankruptcy

Contact Groce & DeArmon, P.C. for Info on Bankruptcy and Foreclosure

Foreclosure may seem like a complex subject, but when you get right down to it, the process makes sense. If you are on the verge of having your home taken away by a lender, then reach out to the bankruptcy lawyers of Groce & DeArmon, P.C. for assistance. For more information on bankruptcy and foreclosure, contact our law firm at 417-862-3706.