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Filing For Bankruptcy Fraud

Filing For Bankruptcy Fraud

In many cases, there are individuals that will consider filing for bankruptcy in order to escape an imposing debt, even though there are not any financial problems in place that would necessitate such an action. Bankruptcy fraud can be generally defined as any kind fraudulent filing for bankruptcy in order to get rid of an existing debt. 
Bankruptcy fraud can be said to occur in three general ways: concealing information of assets, filing multiple applications, and petition mills. All of these types of fraudulent bankruptcy situations are considered to be a Federal crime in the United States, which can carry fines as high as $250,000 and up to five years in prison. 
The most common type of fraudulent bankruptcy is the concealment of assets. This simply entails not providing all of the information required during the filing process and failing to declare all of one’s assets. Oftentimes, this can also include simply transferring ownership to other people, such as family and friends, or moving the assets to accounts in off-shore locations. 
Multiple filings for bankruptcy can be considered to be fraudulent in the case that the filings occur in more than one state. This oftentimes also involves the concealment of assets in order to avoid the liquidation of all assets. This fraudulent type of bankruptcy also includes multiple filings under different names. 
A petition mill involves the commission of bankruptcy fraud by a third party and will usually not actually involve the debtor. A third party will file for bankruptcy under a given name for the purpose of some kind of gain. This situation is most common in poor neighborhoods. It usually takes place in eviction situations, where a fee is charged to fight eviction, and all of the financial information is taken and used to siphon money from these unsuspecting people’s accounts and then filing for bankruptcy under that person’s name.

When to File Bankruptcy?

When to File Bankruptcy?

Filing for bankruptcy is a decision that should be made after serious thought and there is no other possible option. Generally speaking, filing for bankruptcy is an option for those that have debts who simply cannot make the payments. These debtors intend to make the payments, but they simply cannot make them at the current time. Unfortunately, knowing when to file for bankruptcy is often a confusing situation, for many will take this option in order to rid of any financial problems. 
When filing for bankruptcy, one the first major indicators that it should be considered as an option is the presence of outstanding debt. This can include debt on mortgages, loans, and credit cards. Many will often decide to take certain action in terms of covering these debts, oftentimes taking on more loans, or using new credit cards to pay off the balances of previously existing ones. However, this can amount to building even more of a substantial debt, and thus, any person in such a situation may want to consider filing for bankruptcy.
Another situation that points toward bankruptcy may include the case where certain assets, such as vehicles or homes, are actually worth less than the actual balance on the loans owed for such assets.  When it comes to loans, another common type will be student loan bankruptcy. This usually occurs when the student loans are quite large, and a person has not been able to find the appropriate means to pay such loans back. Student loan bankruptcy, due to economic conditions in the country, have become more prevalent in recent years.

Read this Before Filing for Bankruptcy

Read this Before Filing for Bankruptcy

When an individual decides to file bankruptcy they should consider all pros and cons of the situation. The idea of bankruptcy is to protect an individual from further monetary damages. As such, if the option to file for bankruptcy is an option that makes thorough sense, it will fall under these categories:
No other option. After attempting to negotiate with creditors to find repayment plans and you are denied.
Liabilities exceed assets. When a person owes more to different companies than they have in their bank account.
Want to keep your IRA. Money collected in the form of IRAs is saved whether or not an individual files for bankruptcy.
After bankruptcy is filed, a person may run into some negative things that can haunt them and their credit record. For example, after bankruptcy is filed, it stays on a person’s record for up to ten years. Other than feeling a mental and personal strain, after bankruptcy is filed, a person may not be able to borrow from other creditors.
Prior to deciding whether or not an individual should file bankruptcy, it may be advisable to contact a legal representative or a credit counselor. These individuals may be able to help create some sort of payment plan as well as suggest which type of bankruptcy to seek.  Regardless, it is important to consider the outcomes of each option when considering whether or not to file for bankruptcy. 

How to File Bankruptcy?

How to File Bankruptcy?

Filling for bankruptcy can be a difficult thing to accept, however, this law was put into effect to protect people. Prior to filing bankruptcy, ensure that there are no other options. Once a person does file, bankruptcy stays on their credit records for up to ten years.  
If a person has no other option but to file, bankruptcy can come in two common types:  straight liquidation bankruptcy, or a repayment plan. A person should thoroughly research both options prior to filing for bankruptcy to ensure they are making the proper decision. If it is available, legal advice may be helpful.
After deciding which method an individual will utilize when filing for bankruptcy, they should then determine the fee that will be owed for filing. Fees can vary depending on the amount of debt and the type of bankruptcy one is filing. Filing can be done online, but if one chooses to do so it is suggested that fees not be paid using their credit cards.
After filing, an individual will then be faced with different meetings with creditors to determine the bankruptcy and how in depth it is. A creditor has up to 60 days to file a lawsuit against the individual who is filing bankruptcy if they feel there are fraudulent acts taking place resulting in the bankruptcy filing.
When filing for bankruptcy it is important to keep copies of all your documents as well as those from your lawyer. When filing for bankruptcy, your employer will not be notified unless they are a creditor. However, all filed bankruptcies are public records. 

Do It Yourself Bankruptcy Kit

Do It Yourself Bankruptcy Kit

Bankruptcy can be a confusing and complicated thing to face. However, for those who are experiencing bankruptcy, there are Do-It-Yourself bankruptcy kits to help guide you through this process.
When looking for a Do-It-Yourself bankruptcy kit, an individual is first going to have to make sure that the information provided within the kit is valid in their state of residence as well as up to date. Generally, information found in Do-It-Yourself bankruptcy kits will allow users to understand official forms, prepare them for the bankruptcy petition, and help them gather information and documents without the need of assistance from a lawyer.
In most cases, information that will be required when using a Do-It-Yourself bankruptcy kit include all sources of income, wages, commissions, any money collected from retirement plans, public assistance, veteran’s programs, court settlements, child support, and alimony funds.
After properly filling out the necessary information, a person who is filing for bankruptcy using a Do-It-Yourself bankruptcy kit will then be asked to file a personal bankruptcy petition. This petition can be completed online and then printed and filed with the court. Generally, a Do-It-Yourself bankruptcy kit will include some sort of guidelines for filling out this petition.
After filing the petition, individuals will then have to wait to determine the outcome of filing for bankruptcy. In most Do-It-Yourself bankruptcy kits, information about the waiting process and the possible outcomes will be described in full detail. 

Answers to 3 Common Bankruptcy Questions

Answers to 3 Common Bankruptcy Questions

 

What is Bankruptcy?

1. Bankruptcy is a Federal program that enables an individual (or business entity) to alleviate them from massive debts incurred. A bankruptcy filing enables various entities to restructure their debt obligations through liquidation or restructuring.

2. As a result of these characteristics, bankruptcy claims offers those in debt to seek relief through an alternative payment plan or liquidation process. Liquidation means that the debtor’s assets (e.g., cars or mortgage) are sold off and the proceeds of the sale are then used to fulfill their debt obligations.

3. All bankruptcy claims are a part of a Federal program. As a result, the laws and regulations which govern the claims are distributed and heard at the Federal level. In other words, individuals or business entities may not file for bankruptcy at the local level. That being said, each claim is filed through the Federal court system that oversees your particular jurisdiction.

4. Individuals and business entities who file bankruptcy do so to free themselves from the constraints of creditors who perpetually seek repayment. Through the inclusion of a Government agency, those individuals and entities struggling with debts can reorganize their debt structure by supplying incremental payments to their creditors. There are many different forms of bankruptcy filings, the most common being: Chapter 7 filings, Chapter 11 filings, and Chapter 13 filings.

Common Bankruptcy Questions

If you need legal advice and assistance, contact bankruptcy lawyers.

1. Does Filing for Bankruptcy Affect my Credit Rating?

Credit ratings will be affected when an individual or business entity files for either a Chapter 7 bankruptcy or Chapter 13 reorganization petition. That being said, the extent and the intricacies involved in the credit rating system are dependent on a number of individual factors.

 

 

The most substantial factor associated with credit ratings is the underlying debtor’s credit score at the time their bankruptcy filing was initiated. If your credit rating is near perfect or perfect, your score will be impaired. However, if your credit score was terrible to begin with, filing for bankruptcy will actually improve your score.

2. Am I Protected from Repossession?

Repossession refers to a creditor’s ability to seize or take back assets because of the buyer’s inability to meet the loan obligations attached. A creditor’s ability to repossess an item will depend on whether the loan received was secured or unsecured. If the buyer fails to repay a secured loan (meaning the goods purchased were used as collateral, such as cars or mortgages), then the creditor has the ability to repossess the good attached. If the debtor fails to repay an unsecured loan (e.g., credit card or medical bills), the creditor does not possess the ability to repossess any assets.

3. Can Filing for Bankruptcy Help my Tax Issues?

The Bankruptcy Code provides protection to anyone filing bankruptcy. As a result, taxing authorities (including the Federal Government) possess a limited ability to affect your property while your bankruptcy claim is active. The filing of a bankruptcy claim may halt activity for the collection of taxes owed. A Chapter 13 bankruptcy can offer monthly payments of your tax obligations without additional interest or penalties. In contrast, Chapter 7 and Chapter 13 can reduce or eliminate certain tax obligations that were owed for more than three years.