What is bankruptcy fraud?

Bankruptcy fraud is a crime that occurs when someone abuses the bankruptcy system to get out of paying their debts. In Washington, it is illegal to knowingly or fraudulently hide or destroy assets or income in order to gain an advantage in a bankruptcy proceeding. It is also illegal to submit false or incomplete information in a bankruptcy application. Examples of bankruptcy fraud include transferring or concealing assets to prevent them from being included in a bankruptcy case, providing false information on a bankruptcy application, using a false Social Security number to file Bankruptcy, withholding information about assets or income, and lying about debts or creditors. In Washington, anyone accused of bankruptcy fraud can be subject to criminal prosecution and can face up to 5 years in prison and/or a fine up to $250,000. In addition, the court may order the person to pay back the debt that was being avoided by filing for bankruptcy. It is a serious crime and should not be taken lightly.

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What is bankruptcy fraud?

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