When you are in debt, filing for bankruptcy can be the best option to help wipe out certain obligations. However, it’s important to note that this process is not without its downsides. You may find that certain assets are at risk of being seized. As such, many make the decision to conceal assets or omit information when filing. While this may seem like an easy way to retain control of certain assets, this can constitute bankruptcy fraud, which is a serious crime in the United States. As such, if you have been charged with this offense, the following blog explores what you should know about this crime, including the penalties you can face and the importance of working with a Houston white collar crime defense attorney to explore potential defenses you may be able to use.
What Constitutes a Bankruptcy Fraud Charge and What Penalties Can I Face?
Bankruptcy fraud is generally the result of someone who intentionally attempts to deceive or manipulate the court and their creditors. Generally, this is done by failing to list all assets, transferring property to friends and family to protect it from liquidation, or misrepresentation of your finances.
It is imperative to understand that due to the nature of bankruptcy, any crimes commited in relation to this process are handled by the federal courts. As such, your case will be handled in the federal bankruptcy court that corresponds with your district in Texas.
If you are convicted of bankruptcy fraud in Texas, you’ll face up to five years in prison and the potential for up to $250,000 in fines. However, you should note that additional charges can increase the sentence you face. In addition to these penalties, you will likely also have your case dismissed. This means you will not receive a discharge granting you relief, and you will remain legally obligated to repay the debts.
Are There Any Defenses I Can Use?
Generally, one of the most common defenses against bankruptcy fraud is a lack of intent. To be convicted of this offense, the prosecution must show that the alleged fraud was intentional. You may be able to prove that the alleged fraud was actually just mistakes or oversights as a result of confusion surrounding this complicated legal process.
In the event you are charged with fraud, you may be able to show that you actually amended your bankruptcy schedules promptly to fix any errors made. This can help show that you had no intent to defraud the court.
You may also be able to show that the evidence used against you by the state is circumstantial, and they have failed to meet the burden of proof beyond a reasonable doubt that you are guilty of the offense. In this case, your attorney may be able to petition for the dismissal of the case and your acquittal.
Facing charges for alleged bankruptcy fraud can be incredibly overwhelming. That is why it’s imperative to connect with an experienced criminal defense attorney to explore your legal options. Our firm understands how difficult these matters can be to navigate, which is why we will do everything in our power to help you fight for the best possible outcome. Contact us today to learn more.