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MD Federal Bankruptcy Fraud Lawyer
Bankruptcy is an important legal and economic tool that individuals, businesses, and other entities can lawfully utilize in order to consolidate their assets and pare down their liabilities and/or debts. Taking the step to file for bankruptcy, whether as an individual or a business, requires one to engage in a precise accounting of all types of personal and business property. This accounting of your assets is extremely important because all property is subject to the bankruptcy filing, and only certain property can be considered exempt under the Title 11 of the United States Code. The potential to commit bankruptcy fraud, a serious federal offense, typically occurs when individuals or businesses attempt to conceal assets. However, there must be intent to commit this fraud. Therefore, simply because you are being investigated doesn’t mean you will be charged or prosecuted. If you find yourself in a situation wherein you concealed assets or filed false or incomplete forms with the United States Bankruptcy Court, contacting a Maryland federal bankruptcy fraud lawyer from our firm will provide you with the necessary guidance and specific case evaluation you need to protect your rights and ideally attempt to minimize the potential consequences you may face.
What is Bankruptcy Fraud
Depending on your particular circumstances, the type of bankruptcy you file with the federal bankruptcy court involves different ways to eliminate assets and debts.
The three most common types of bankruptcy filings are Chapter 7, Chapter 11b and Chapter 13. Commonly, most individuals file for either Chapter 7 or Chapter 13 Bankruptcy. Businesses, in contrast, often file Chapter 11. Regardless of the type of bankruptcy you may file, all require you to reveal your capable assets to the court. Federal prosecutors may bring bankruptcy fraud charges under 18 U.S. Code Section 152 and 18 U.S Code Section 157. Both statutes prohibit knowingly concealing assets, intentionally filing false or misleading claims, or knowingly engaging in fraudulent activity or bribery with the court, an officer of the court, or the U.S. Trustee.
Penalties for Bankruptcy Fraud
It is important to remember that concealing assets from the bankruptcy court is a serious offense that may have broad-reaching implications on the larger lending industry. If the court were to allow you to conceal your assets from your creditors, you would be profiting from your own insolvency. As such, bankruptcy fraud which carries a penalty of up to five years in prison and/or a fine of up to $250,000 or both.
Experience Federal Bankruptcy Fraud Lawyer on Your Side
No matter the circumstances of your federal bankruptcy fraud charges, having a seasoned Maryland federal bankruptcy fraud lawyer from our firm on your side is the first step to getting a handle on the allegations pending against you. Our lawyers possess the sound legal knowledge, experience, and familiarity with this type of offense to help you navigate the waters of the federal criminal justice system.