Federal Bankruptcy Fraud – 18 U.S.C. § 157
This is the federal bankruptcy fraud criminal section that the prosecutors use to prosecute people for federal bankruptcy fraud. When I see the feds coming involved — and I’ve been doing this for twenty-five years — where someone related to a bankruptcy fraud case at the federal level — is when people are clearly racking up money, racking up debt, credit cards, all sorts of different things, when it’s obviously clear that they have no intent whatsoever to satisfy their obligations, and then as a shield they are using the federal government bankruptcy laws in order to try to extinguish that debt.
We see this when people are getting into agreements with big companies enter agreements with buying goods and services. We see this where people doing bust-out schemes with credit cards, where they’re getting a bunch of credit cards, running them up and then trying to get rid of the debt, and we see people who are dealing with big dollars, big numbers and it’s just very clear that they’ve loaded up all that debt never intending to pay — never making any real substantial payments. Sometimes they’ll make little tiny small payments just to keep things moving forward, but what this has to do with is that a reasonable person looking at things and saying, this person was never going to pay any of this money back.
Federal Prosecution – Amount of Loss and How Many Victims
They were trying to rack up large amounts of debt, and that’s when the federal government is going to become involved. They’re going to use their resources and their agents to try to get that money back and they’re going to prosecute the person criminally at the federal level depending on how much the amount of loss is. In other words, how much dollars we’re talking about. That can be an enhancement to the person’s sentence. Depending on how many victims are involved is also another factor that the probation department, judge and prosecutors are going to look at when what’s filed and what is prosecuted and how a case is sentenced for federal bankruptcy fraud.
The Federal government takes bankruptcy fraud very seriously and imposes heavy sentencing. Our bankruptcy fraud lawyers are here to help you protect your rights if you are facing these felony charges of bankruptcy fraud. Being bankrupt is to be legally insolvent. All your property is liquidated and divided among creditors to pay off your debts. When you file for bankruptcy in an attempt to conceal your assets in order to be released of all your debts by portraying yourself as being incapable to pay, you are committing a felony that carries a sentence of a fine up to $250,000 and/or five years in prison.
Types of Bankruptcy Fraud Cases
Click here for more information about federal bankruptcy fraud. There are many types of bankruptcy fraud that the federal government may bust you for. Some common types of bankruptcy frauds are: 1) Concealment of Assets is when a person conceals some of their assets knowing that creditors can not go after what they do not know about. 2) Launching Petition Mills is a scheme that claims to help and advise tenants on how to avoid eviction. Once a tenant responds to this typing service, the typing service then takes the tenants name, and without tenant’s consent, files bankruptcy in the tenant’s name. The tenant thinks he/she is getting help, and the typing service is basically draining his/her savings, ruining his/her credit, and postponing the inevitable eviction. 3) Multiple Filings is when a person files for bankruptcy in more than one state using the same assets but leaving out some assets to protect valuables from total liquidation when debts are paid.
There are other types of bankruptcy fraud that the Feds can charge you with such as bustouts, bleedouts, pyramid scheme. If you are being charged with bankruptcy fraud, you need an experienced and knowledgeable defense attorney to help you. The Los Angeles bankruptcy fraud attorneys at Hedding Law Firm have a combined 75 years experience and our credentials are unmatched in the federal court system. We have handled many fraud cases involving bankruptcy fraud and have seen great results.
Developing an Effective Defense Strategy
So, if you’ve got a situation like this, some people might have a defense. They might say, I deal with big numbers. I take big risks but I was never intending to defraud anybody. Things just went south on me. It wasn’t my fault, and then you bring evidence forward to show that you were trying to do things the right way — trying to be able to pay your creditors and you weren’t trying to run some sort of a scam or game, because obviously, this hurts somebody’s credit when you have to claim bankruptcy.
- What Is the Federal Bankruptcy Fraud Statute of Limitations?
- Bankruptcy Fraud – United States Department of Justice
- Bankruptcy Fraud: When is it Committed?
Nobody wants to do it unless they’re in a bad position and while they’re in that bad position, they end up making some moves — doing something stupid, being careless, taking a risk and being unsuccessful with that risk. That’s not bankruptcy fraud. But when you start to lose massive amounts of money and you’re in a position where you can fix that problem by stopping to take on debt and do things that are dangerous to your credit, your creditors, your financial situation, then we’re in a good position to be able to defend you.
But if on the other hand it’s clear that whatever it is that you’re doing relies and relates to a fraudulent move, then we’re going to be in a bad position and we’re going to need to make some moves on your behalf to try to turn the tide and show your version of events, the mitigating circumstances that surround your arrest for federal bankruptcy fraud and come up with a game plan moving forward so that we can get you out of the federal criminal defense system as fast and possible, get your creditors paid back and put you in the best possible position.We strive to get the best results possible and protect your rights. Contact us for a free face to face consultation.