The Blog Squad

Some people considering debt settlement vs bankruptcy, decide on bankruptcy because they think that they can hide some of their assets with no penalties.

This, however, would be bankruptcy fraud which is a federal offense. And if a person intentionally misrepresents his assets, debts, and so on during the filing – he can be convicted of bankruptcy fraud and possibly go to jail.

Most cases of bankruptcy fraud occur because the person filing attempted to conceal his assets. An example would be transferring substantial amounts of money from your bank account or investment portfolio to a family members account in order to hide it.

In cases like this where you are unsure of the legal ramifications of moving property or sums of money before filing for bankruptcy, talk to your attorney.