If I can't repay a debt, is declaring bankruptcy considered fraud?
Jan Meriss Alfonso Assistant at Ascent Law LLC Is Declaring Bankruptcy Considered Fraud? Filing for bankruptcy can be considered fraud if you make a false statement or omit information. It's a crime to lie under oath and the Department of Justice can charge you with perjury if you attempt to conceal something. Luckily, there are ways to protect yourself. Perjury Bankruptcy fraud is a form of criminal activity involving the filing of fraudulent bankruptcy petitions. These actions are illegal and can result in a fine of up to $250,000 and up to five years in federal prison. Most filers are fully aware of their actions and expect a potential fraud charge. In order to avoid bankruptcy fraud, the debtor must disclose all assets and income to the court. Any assets not disclosed may not be exempt and could be sold off by the trustee. Moreover, filing a fraudulent bankruptcy petition can lead to criminal charges for hiding assets. Hiding assets When filing for bankruptcy, people should n...