
Post-Bankruptcy Life is Good
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For millions of Americans struggling with debt, bankruptcy can provide a necessary life raft, lifting them out from under the tumultuous oppression of debt and into a brighter financial future. Bankruptcy is a complex process, however, and unwitting bankruptcy filers sometimes find themselves in the midst of allegations of fraud.
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Bankruptcy fraud is a white collar crime that has a rather far reaching definition. It encompasses some acts that individuals may unknowingly engage in prior to or during the bankruptcy process. Further, a finding that you intended to defraud creditors can also lead to the court electing not to discharge a debt.
The potential stakes of a bankruptcy fraud case can be illustrated by the tale of a Wichita, Kansas car dealer. Nazer Ali Haider, who owned a used car dealership in Wichita, was convicted of the federal crime of bankruptcy fraud. Haider gave money to relatives before filing and lied on his bankruptcy paperwork. Evidence produced at trial showed Haider provided money to both his wife and brother, than stated in his Chapter 7 filings that he did not make any transfers. He also charged over $125,000 on credit cards within a year of filing for items such as jewelry, airline tickets, and other goods. Haider faced up to five years in prison and a fine of up to $250,000 on each count.
Haider’s actions are not necessarily ones that an average citizen would know could lead to charges of bankruptcy fraud. To avoid ever ending up in a situation like Haider, it is imperative that all potential Chapter 7 filers understand the actions that constitute bankruptcy fraud so that they steer well clear of them.
If you are considering filing for Chapter 7 bankruptcy, it is best to avoid:
Our law firm has assisted hundreds of clients in obtaining relief under Chapter 7. New Jersey Bankruptcy Lawyer Andrew Carroll’s clients receive the individualized attention necessary to achieve the greatest results. For legal services with unmatched professionalism and zeal, call New Jersey Bankruptcy Lawyer Andrew Carroll at (609) 400-1302.