Honesty

Honesty is the Only Policy in Bankruptcy – Runaway Thunderbird

February 26, 2015

Capture

You cannot hide assets during a Bankruptcy Filing without serious ramifications.

While in a Chapter 7 bankruptcy, a debtor disclosed during a Meeting of Creditors that he owned a 1957 thunderbird and a trailer to store the car both valued at $90,000.

Shortly after, the debtor claimed that the vehicle was lost or his son with a similar name had taken the vehicle.  Subsequently, the debtor created false bills of sales in an attempt to show he had transferred the Thunderbird and the trailer to his son.   However, during a DMV search, it was found that the transfer of ownership never took place. Continue reading…

Prison Time for Bankruptcy Fraud

Handcuffed SuspectJuly 29, 2014

Recently a Dallas woman was sentence to one year and one day in Federal Prison for making false statement during her multiple bankruptcy fillings.

Estela Martinez (54) was out on bond, failed to show up at her sentencing hearing – she was later arrested at her home and held until the final hearing.

What did she do? Continue reading…

GM Providing Half Truth About More than their Ignition Switches?

July 14, 2014

GM

 

When GM filed bankruptcy in 2009, the company was required to file disclosures to the court about its potential liabilities and known creditors. It did not include any of the people with active legal claims against the company based on ignition switch problems in its list, according to the court filing.

Federal prosecutors are developing a criminal fraud case hinged on whether General Motors made misleading statements about a deadly ignition switch flaw, and are examining activity dating back a decade, before GM’s 2009 bankruptcy, according to multiple sources familiar with the investigation. Continue reading…

Honest is the only policy in Bankruptcy – Half Truth is a Whole Lie

Half truthJuly 13, 2014

Recently Bankruptcy Court ruled that a debtor could not pursue a personal injury claim when she failed to disclose that in her bankruptcy petition.

While in a Chapter 13 bankruptcy, a debtor got fired from her job at the hospital.   The hospital failed to provide adequate accommodations due to her disability. Continue reading…

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