Although a bankruptcy filing will stay on your credit report for 10 years and will make the process of obtaining loans, applying for credit cards, or engaging in future financial transactions almost impossible, there is a good chance that after you have filed statement, your debts will be eliminated.
Advances in bankruptcy fraud, in turn, have prompted the government to commit to a relentless crackdown on this type of fraud, which will hopefully put an end to the many false bankruptcy filings and result in that an increasing number of people return. on your financial feet in a solid way.
Bankruptcy fraud can be accomplished in a variety of ways, some of which are difficult to detect. For example, when a person files for bankruptcy when it is not really necessary, the person will try to hide his assets by giving them to someone else temporarily and refusing to disclose them.
The assets that the person actually has are sold and their debts are forgiven. Once the bankruptcy process is complete, the person simply repossesses their property from whoever owned it, and the person is now in a much better position than before, despite the blemish on their credit report. If he has enough property and can somehow hide it from the government, even though his credit report shows bankruptcy, he can still find ways to buy items because he still has the assets.
Bankruptcy fraud is indeed a dangerous situation, because it is detrimental to those who file bankruptcy for legitimate reasons. On the contrary, those who make a fraudulent filing are blocking the court system and hindering the resources that other people need to pay off their debts and, therefore, it is detrimental to the entire process.
Creditors also suffer because if someone files a bogus bankruptcy and hides their assets, creditors will not get the money they are owed in lieu of unpaid debts and thus find themselves “out in the open” or “left with the bag”. “.
Because bankruptcy fraud is detrimental to everyone involved, the government has stepped up its efforts to crack down on it. Any person who willfully and knowingly commits bankruptcy fraud will be prosecuted to the fullest extent of the law. So, for those who file for fake bankruptcy, think twice before trying it because it’s not worth it in the long run and you won’t get away with it. A word to the wise should suffice.