Bankruptcy offers individuals and companies the chance to start fresh, either with a payment plan they can manage or with a clean slate free of past debt. In either case, the bankruptcy courts are very diligent about looking for instances of fraud, and they are aware of their potential to be part of a bankruptcy plan. If the court suspects that fraudulent activity has occurred, it is very likely the judgment will not be in your favor. Therefore, it is important to make sure nothing in your overall plan or history could be misconstrued as fraud.
The Effect of Past Fraud Convictions
Even if your bankruptcy is completely legitimate, the courts will take your past into account. If you have convictions of fraud on record, they will look even closer at your bankruptcy. It is important to understand that if you do have fraud convictions and court orders to make payments concerning them, no part of that judgment will be discharged in your bankruptcy. In fact, nothing that applies to a criminal conviction can be discharged from your debt through bankruptcy. For more information about debts and bankruptcy, click here (http://www.zerodownbankruptcy.com/).
Activities That Could Be Considered Fraudulent
Bankruptcy laws have changed to make it increasingly difficult to file bankruptcy more than once. This was done because, in the past, some consumers would repeatedly file bankruptcy in order to avoid paying any of their debt. If you have previously had a bankruptcy discharged, the court will take that into consideration. They might even look into your finances to try and determine if there are signs or patterns that indicate fraudulent activity. There are other signs as well, which include, but are not limited to, the following:
- Getting a cash loan within a couple months of filing bankruptcy
- Opening new credit accounts and reaching their maximum limits within a couple months of petitioning the court
- Buying new property and keeping those payments current while defaulting on other payments
Signing someone else’s name to an account or loan is not the only kind of fraud. Fraud comes in multiple forms and is something that the bankruptcy courts regularly look for when consumers petition the court for a discharge of their debts.
The Importance of Consulting a Bankruptcy Lawyer
Make certain that if you are considering bankruptcy, you consult with our attorneys about both your recent financial timeline and your plans so that you do not unintentionally do something that could be considered fraudulent and cause your bankruptcy to fail. You don’t want to risk the penalties that can result from making a simple mistake. Get more information about Chapter 7 bankruptcy in Florida here (http://www.zerodownbankruptcy.com/bankruptcy-lawyer-st-petersburg-florida/chapter-7/).
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