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The Harsh Consequences of Lies in Bankruptcy Court

One of the most important things to remember as a borrower filing for bankruptcy protection is that you must be completely honest in all dealing with the bankruptcy court. These are legal proceedings, and false information, misrepresentation or omitted information can lead to harsh penalties. Let's take a look at a few examples of just how serious a bankruptcy fraud conviction may be:

A real estate broker in Alpharetta, GA was sentenced to 15 months in federal prison for making false statements in his bankruptcy case. The broker plead guilty in August of 2010 to charges related to making false statements regarding his income and his creditors.

A Minneapolis woman was sentenced to 14 months in federal prison for making a false statement in a friend's bankruptcy filing and defrauding a federal credit union while seeking an auto loan. The woman accepted a plea agreement, where she admitted to providing false testimony under oath. She was charged for one count of bankruptcy fraud and one count of bank fraud. The friend in this case was also sentenced to 120 months in prison, for crimes related to a multi-million dollar scheme to defraud financial lenders and others.

Falsely representing income, assets, debt or other information on a bankruptcy petition or in any testimony, court hearing or other matter related to a bankruptcy case can have disastrous results. This is one of many reasons it is highly recommended that you work with an experienced attorney to handle your case. A bankruptcy lawyer will know how to properly file all information in the matter to help you avoid unintentional misrepresentation.

The legal team at Jacoby & Jacoby is dedicated to representing borrowers throughout Long Island in all types of Chapter 7 and Chapter 13 bankruptcy proceedings. With the experience and understanding of these often complex cases, the firm can provide legal counsel to help you avoid unintentional fraud.

Contact a Long Island bankruptcy attorney at the firm today.

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