NJ Bankruptcy Fraud Charges
Bankruptcy Fraud: Understanding What it is, Consequences and How to Protect Yourself
Many individuals and businesses experience financial struggles at some point, leading them to find solutions such as filing for bankruptcy. Bankruptcy laws exist to assist borrowers to regain their financial freedom by providing various options for becoming debt-free. However, some unscrupulous individuals try dishonest means in their bankruptcy applications, which could get them into trouble with the law or severe consequences. This article aims to help you understand what bankruptcy fraud is, its consequences, how you can identify it and protect yourself.
What is Bankruptcy Fraud?
In simple terms, bankruptcy fraud refers to a feeble-minded or dishonest practice when an individual or entity files for bankruptcy. It happens when they withhold information about relevant assets or lie about their expenses on their bankruptcy application intending to mislead the court system. Sometimes applicants may even accrue up debts through loans and credit cards that they have no intention of repaying so that they can file for bankruptcy soon after receiving the funds.
Besides not being truthful on the application form, covertly concealing property knowingly before filing for and managing non-routine expenditure using a credit card just before submitting your application are some ways of committing this offense.
Penalties for Bankruptcy Fraud and Related Charges
Bankruptcy offenses attract various charges apart from fraud but all of generate significant legal financial consequences that you must be aware of.
The following table shows the different charges one might face in association with Bankruptcy Fraud:
| Charges | Potential Penalties |
| —————— | —————— |
| Bankruptcy Fraud | max fine $250,000; imprisonment over five years |
| Fraud | max fine $1,000,000; over twenty years in imprisonment |
| Bribery | fifteenth imprisonment; monetary penalties |
| Bank Fraud |max fine $1,000 000 ; over thirty years in imprisonment |
| Wire or Mail Fraud | max fine $250,000; over twenty years in imprisonment |
Defenses Against Bankruptcy Fraud
If you are charged with bankruptcy fraud, it is essential to involve an experienced attorney who will help you fight the charges. The prosecution must provide evidence that implies that you deliberately intended to keep materials omissions from the court documents. However, if the omission was incidental or not willful, then the attorney can use this argument in your defense.
An experienced attorney may also challenge prosecutors’ evidence or raise statutory limitations on your behalf to have your charges expunged completely.
How Can You Protect Yourself From Bankruptcy Fraud?
To avoid facing such criminal accusations with significant financial implications on your reputation and business interests, ensure that you stay truthful throughout all bankruptcy process phases. Honesty pays huge dividends in the long run because if discovered by regulators, false claims could lead to criminal sanctions including jail terms and fines.
Furthermore, refrain from taking out loans and credit card debt within 90 days of filing for bankruptcy as non-repayment of such debts attracts suspicion from bankruptcy services.
Engaging an Experienced Bankruptcy Fraud Attorney
It is critical to secure an experienced bankruptcy fraud lawyer when charged with a crime so that they could assist with analyzing your financial situation in addition to building up legal defenses. They can negotiate plea-bargains which minimize penalties and terms of imprisonment for their clients while arguing before a jury competently and swiftly other instances.
Additionally lawyers specializing insolvency help file for bankruptcy legally- by speeding up discharge periods- helping individuals bounce back quickly from financial hardships altogether.
Bankruptcy fraud is a severe offense whose tribulations could stall even those who intend to apply for genuine relief under bankruptcy laws meant well. Understanding what it entails makes it easier for people either facing charges related to bank transgressions or intending to ask for such assistance later on continue conducting business dealings without fear of the consequences.
NJ Bankruptcy Fraud Charges
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NEW JERSEY CRIMINAL DEFENSE ATTORNEYS