How Does Bankruptcy Affect PPP Fraud Cases? It DOESN’T – You’ll Owe Forever Even After Death!

How Does Bankruptcy Affect PPP Fraud Cases? It DOESN’T – You’ll Owe Forever Even After Death!

So your probably thinking bankruptcy can wipe out PPP fraud debts and give you a fresh start.

Maybe you figure Chapter 7 will discharge the restitution or Chapter 13 will let you pay pennies on the dollar.

Or maybe your hoping to file bankruptcy before criminal charges to protect your assets.

Look, we get it.

Bankruptcy seems like the ultimate reset button.

But here’s the absolutely crushing truth – PPP fraud debts are NON-DISCHARGEABLE in bankruptcy!

NON-DISCHARGEABLE!

The government will hunt you forever.

Forever!

And these debts even survive your DEATH to haunt your family!

Your death!

Can Bankruptcy Discharge PPP Fraud Debts?

ABSOLUTELY NOT! PPP fraud debts are permanently NON-DISCHARGEABLE in all bankruptcy! Criminal restitution, fines, penalties – NONE of it goes away in Chapter 7, Chapter 13, or Chapter 11! The U.S. Bankruptcy Courts have zero power to eliminate criminal fraud debts. Your bankruptcy petition is toilet paper against federal criminal obligations!

The Supreme Court made it crystal clear – criminal restitution SURVIVES bankruptcy! Any condition imposed as part of criminal sentencing is preserved from discharge. PPP fraud restitution is a criminal sentence condition. It’s untouchable by bankruptcy law. You’ll owe it FOREVER!

Fraud debts have been non-dischargeable since bankruptcy law began! Section 523(a)(2) of the Bankruptcy Code specifically excludes debts obtained by false pretenses, false representation, or actual fraud. PPP fraud hits ALL these categories. Triple protection against discharge!

What About Filing Before Criminal Charges?

Filing bankruptcy BEFORE charges makes you look GUILTY! Prosecutors see pre-indictment bankruptcy as consciousness of guilt. Your trying to hide assets before conviction! This actually ACCELERATES criminal prosecution. Instead of protection, you painted a target on yourself!

The automatic stay does NOT stop criminal prosecution! The Department of Justice continues PPP fraud investigations and prosecutions regardless of bankruptcy filing. Criminal proceedings are specifically exempted from bankruptcy stays. FBI raids continue, indictments proceed, trials happen!

Asset transfers before bankruptcy are FRAUDULENT CONVEYANCES! Moving money or property to protect from PPP fraud liability? That’s bankruptcy fraud ON TOP of PPP fraud! Now your facing additional federal charges with more prison time. You made everything infinitely WORSE!

What Happens to Restitution Orders?

Restitution orders are FOREVER – no statute of limitations, no discharge, no escape! Federal criminal restitution under 18 U.S.C. § 3663 never expires. The government has eternal collection rights. Twenty years later? Still owe it. On your deathbed? STILL OWE IT!

Recent 2025 cases show MASSIVE restitution beyond loan amounts! Richard Nieto got $913,000 in PPP loans but owes $962,438 in restitution! The extra $50,000? Interest and investigation costs! Renetta Golden-Larimore owes $908,278 for $900,000 in loans. The amounts keep GROWING!

The Criminal Division adds everything to restitution – interest, penalties, investigation costs, prosecution expenses, administrative fees! Your $100,000 fraud becomes $200,000 in restitution. Compound interest makes it grow forever. Death doesn’t stop the accumulation!

Can Chapter 13 Help With Payments?

Chapter 13 does NOT reduce PPP fraud debts – just spreads payments! You still owe 100% of criminal restitution through the payment plan. At the end of Chapter 13, any unpaid balance remains. You emerge from bankruptcy owing the SAME amount minus whatever you managed to pay!

Priority debts get paid FIRST in Chapter 13! Criminal restitution has priority over credit cards, medical bills, personal loans. Your bankruptcy payments go to the government FIRST. Other creditors get nothing until fraud debts are satisfied. Your helping the government collect!

Missing Chapter 13 payments triggers immediate collection! Fall behind on your plan? The government immediately resumes wage garnishment, asset seizure, tax refund interception. Plus your bankruptcy gets dismissed, leaving you with no protection AND angry prosecutors!

What Collection Powers Does the Government Have?

The government can garnish wages FOREVER without court orders! Federal criminal restitution allows administrative wage garnishment up to 25% of disposable income. No lawsuit needed. No judgment required. Your employer must comply or face penalties. Retirement? They garnish that too!

Tax refunds are automatically intercepted EVERY YEAR! The Internal Revenue Service Treasury Offset Program grabs your refunds before you see them. Federal refunds, state refunds, earned income credits – ALL seized for restitution. This continues until death!

Social Security benefits are NOT protected from criminal restitution! Unlike civil debts, criminal restitution can take Social Security retirement, disability, even survivor benefits! Your planning to retire on Social Security? The government takes it for PPP fraud debts!

What About Asset Protection?

NO assets are protected from criminal forfeiture and restitution! Your homestead? Government takes it. Retirement accounts? Seized. Life insurance? Garnished. Tools of trade? Gone. Everything you own or will ever own is available for collection!

The Asset Forfeiture Program takes property IMMEDIATELY upon conviction! Under 18 U.S.C. § 981 and § 982, anything bought with or traceable to PPP funds gets forfeited. House, cars, jewelry, investments – GONE! This is separate from and additional to restitution!

Future inheritance gets seized for old PPP fraud debts! Parents leave you money 20 years later? Government takes it. Win the lottery? They’re first in line. Injury settlement? Goes to restitution. Every windfall for the rest of your life goes to the government!

Does Death End the Debt?

NO! PPP fraud debts SURVIVE YOUR DEATH and attack your estate! Your estate must pay criminal restitution before ANY distributions to heirs. Your children inherit NOTHING until the government is paid in full. Your death doesn’t free your family!

Life insurance proceeds can be seized for criminal restitution! That million-dollar policy to protect your family? If traceable to fraud or purchased with fraud proceeds, the government takes it. Your family gets nothing while government gets paid!

The government files claims against estates for DECADES-old fraud debts! There’s no time limit on estate claims for criminal restitution. Die 30 years after PPP fraud? Your estate still owes every penny plus three decades of interest. Your legacy is debt!

What If I Have No Assets?

“Judgment proof” does NOT exist for federal criminal restitution! Can’t pay now? They wait. Get a job later? Garnished. Inherit money? Seized. Win something? Taken. The government has infinite patience and eternal memory. Your poverty is temporary; there claim is permanent!

Monthly supervision fees ADD to your debt while on probation! Can’t pay restitution during supervised release? You still owe monthly supervision fees! These ADD to your criminal debt. Being broke makes you owe MORE money you don’t have!

The Federal Bureau of Prisons Inmate Financial Responsibility Program takes prison wages! Making $0.23/hour in federal prison? They take half for restitution! Your prison commissary account? Garnished! Even locked up, they’re collecting!

Can Anything Help?

NOTHING helps except paying in full! No discharge, no settlement, no negotiation, no forgiveness. Presidential pardons don’t eliminate restitution. Completing prison sentence doesn’t waive it. Good behavior doesn’t reduce it. You owe until paid in FULL!

The only “relief” is death without assets! If you die completely broke with no estate, no insurance, no property – only then does collection stop. But if you have ANYTHING of value, even posthumously, the government takes it first!

Avoiding fraud charges is the ONLY protection! Once convicted, you’re financially destroyed forever. No bankruptcy protection, no asset protection, no time limits. The only escape is not getting convicted in the first place. After conviction, you’re a financial slave for life!

BANKRUPTCY CAN’T SAVE YOU: PPP fraud = NON-DISCHARGEABLE forever!
Wages garnished! Refunds seized! Social Security taken! Survives DEATH!
Call 212-300-5196 IMMEDIATELY – avoid conviction or owe FOREVER!

Look, bankruptcy offers ZERO protection against PPP fraud consequences. Criminal restitution, fines, and penalties are completely non-dischargeable in any chapter of bankruptcy. The government has unlimited collection powers that last forever – wage garnishment, tax refund interception, Social Security seizure, asset forfeiture. These debts even survive your death to attack your estate.

Recent 2025 cases show restitution exceeding loan amounts by tens of thousands due to interest and costs. Filing bankruptcy before charges makes you look guilty and accelerates prosecution. Chapter 13 just creates a payment plan for the full amount. No assets are protected, no relief is available, and the debt grows with interest forever.

The ONLY way to avoid lifetime financial slavery is avoiding conviction. Once convicted of PPP fraud, you’ll owe until every penny plus interest is paid – whether that takes 50 years or follows you to the grave. Your family inherits nothing until the government is satisfied. Call us immediately at 212-300-5196 because preventing conviction is your ONLY hope of financial survival!