Bankruptcy comes under the jurisdiction of the federal courts and not the state courts. Therefore, the bankruptcy proceedings function on the basis of the federal laws. Moreover, during bankruptcy, if you get involved in any kind of misconduct like that of hiding your assets or paying bribes, that is a criminal offense. Such misconduct can result not only in criminal charges but also in a prison sentence. Therefore, it would be better to consult a criminal attorney in such situations.
Hiding any of the assets from your creditors or to whomever you owe money is considered bankruptcy fraud. This is a criminal offense and thus is punishable by prison. You can commit bankruptcy fraud either knowingly or unknowingly. However, in both situations, you may have to take the help of a criminal lawyer. He/she can help you in handling the issue and guiding you through the problematic and complex situation.
Bankruptcy in itself is a complex procedure and on top of that if you commit fraud, it is going to get even tougher for you. Bankruptcy fraud is such a crime that would require you to get help of a well trained attorney with regards to federal criminal cases, who is experienced enough in managing cases in relation to the bankruptcy statute. If you choose to make false statements knowingly, the situation can turn out to be even tougher for you.
It is known that a person in general is required to go through bankruptcy counseling and get the help of a bankruptcy lawyer to file the case. So, it becomes quite obvious that the person filing bankruptcy would be aware of what to do and what not to do, which assets will have to be listed and which won’t come into consideration.
According to reports, it’s been seen that the number of bankruptcy fraud cases has been on a steady rise since 2003. On estimation, it was seen that amongst the total number of bankruptcy filings, 10 percent had incidence of bankruptcy fraud. If you get convicted of committing bankruptcy fraud, you will have to serve at least 5 years in prison or more than that. In addition, you will have to pay up $250,000 in fines.
Such bankruptcy fraud attorneys work with:
The third parties
And with anybody else in relation to the bankruptcy and the people to whom the debtor owes the money
So, if you too have got involved in any such bankruptcy fraud cases, it would be better to get the help of a criminal attorney.