When you file bankruptcy, you could go to prison if you make false statements. Depositing money to a relative’s account and not disclosing this is clearly fraud. Fraudulent transfers are caught when you file bankruptcy.
Your bankruptcy petition must be accurate. When you sign your bankruptcy petition, you are swearing that everything is accurate, correct and you have disclosed any sales of property. Fraud is a serious offense is bankruptcy.
Background – Filing of Chapter 7 Bankruptcy:
- Small business owner gets prison sentence.
- Filed Chapter 7 Bankruptcy.
- Debtor was the owner of a liquor store.
- The small business owner sold the liquor store for $171,000
- Rather than depositing the proceeds in his bank account, he had his parents deposit the proceeds in their bank account.
- Parents paid his expenses and gave him cash on a regular basis from the funds.
- This income/profit was never disclosed in the Bankruptcy Petition.
Court Decision
- Debtor was sentenced in Federal Court to a one-year jail sentence.
- Ordered Debtor to pay back $119,000 in restitution
- Restitution is a non-dischargeable debt in bankruptcy
- Jury deliberated for several hours
- Jury found the debtor guilty of all 6 counts of fraud.
- False swearing or not disclosing financial information on a bankruptcy petition is clearly fraudulent.
Making false oaths and false statements in bankruptcy is a serious offense. You can be sure that I remind my clients during each meeting about honesty. Honesty is the only policy when you come to the U.S. government for a fresh start.
I offer a free bankruptcy consultation. During the consult, I go over all your financial information. I would not file a bankruptcy petition and risk prison for my clients for false statements .
If you sell an asset, you must disclose where the proceeds were deposited. Never even consider making false statements when filing bankruptcy. Prison is not somewhere you want to be. False statements will get you prison time. In addition, restitution is non-dischargeable in bankruptcy.
Bankruptcy protection is available and I can help you. Hire a board certified bankruptcy lawyer so you are given the best legal advice for bankruptcy.
