Prosecution For Bankruptcy Fraud
Committing a bankruptcy fraud is a criminal offense in the United States. If the Internal Revenue Service finds out about it then they will conduct a criminal investigation on you or your business. In case you are one of them, who is seeking refuge under bankruptcy from debts and are being fraudulent, then you might as well know the penalties if you have been found out. |
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There are different types of penalties that can be laid on you if you have been caught. First one is monetary penalty under which you will be required to pay a huge amount as a fine for wasting the courts time and the Internal Revenue Service official’s time. Also, remember that people who helped you file bankruptcy will also be charged. The amount of penalty depends on how severe the violation was.
Secondly the case will be dismissed and the credit report will go from bad to worse. it will also carry a fraud tag on to it. If the fraud is severe and you have cheated investors and so on you will be liable for criminal prosecution. As a result, if found guilty, you will be awarded prison time. If the fraud is minimal, it may end up in community service.
So in case you are filing for bankruptcy and you are doing it with half knowledge then you might get into trouble unknowingly. Always take the help of an attorney even if it costs money. Your intention may not be to commit fraud but some mistakes may lead to that.
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