Bankruptcy fraud
Bankruptcy fraud is considered a Federal crime which is a serious offense. This can lead to investigation by the US Trustee’s office and punishment includes fines as well as possible jail time. Bankruptcy fraud is basically concealing assets and not reporting accurate financial information to the Bankruptcy Court. The IRS has some examples of Bankruptcy fraud on their website.
Bankruptcy fraud includes concealing assets held not only before Bankruptcy but also property that may be acquired by the debtor after bankruptcy. If the debtor receives property such as an Inheritance or proceeds of a Life insurance policy within 6 months of filing Bankruptcy, then the debtor should notify the Trustee of this information. If this is not reported, the Bankruptcy discharge may be revoked and will be considered as Bankruptcy fraud.
