Other Must-Read Articles
- Are You Ready For Bankruptcy?
- Debt Negotiation
- Bankruptcy Means Test
- Prepare for Bankruptcy
- Bankruptcy Trustee
- Non Dischargeable Debt
- Bankruptcy Pitfalls
- Debt Collection Practices Act
- Life After Bankruptcy
- How to Have Top Rated Credit
- Credit Counseling
- Identity Theft and Identity Fraud
- Department Store Credit Cards
- Famous Bankruptcies
The number one reason people commit bankruptcy fraud – to conceal assets. The goal is to keep more assets for ourselves and not lose these through the bankruptcy process. Unfortunately for those who attempt bankruptcy fraud, the U.S. Government is pretty good about detecting such attempts.
A few other common types of bankruptcy fraud include false filings (usually false statements) and multiple bankruptcy filings by using varying social security numbers, names, dates of birth or even filing in different states.
The FBI has jurisdiction over most types of bankruptcy fraud. It has been reported by some websites that the FBI is prosecuting fewer bankruptcy fraud cases than in past years due to the rising number of fraud cases involving the mortgage and securities industry. One FBI report estimated that 1 in 10 bankruptcy filings involved fraud.
Ending the fiscal year September 30, 2009 there were about 1.4 million bankruptcy filings, about 35% increase from the prior year.
One newer type of bankruptcy fraud has involved those who also were victims of identify fraud. A criminal steals your identify and accumulates assets under your name. Due to their mismanagement they end up in bankruptcy court to protect their fraudulently-gained assets (such as a home).
If you believe you were a victim of bankruptcy fraud contact your local bankruptcy trustee. Those committing bankruptcy fraud may be subject to fines and jail time.