CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Bankruptcy Red Flags: How to Avoid Suspicion of Fraud When You File

Bankruptcy Red Flags Pasco, St Petersburg, And Tampa Florida.Bankruptcy Fraud Red Flags

Filing for bankruptcy is a complicated process. It’s possible to file on your own, but it isn’t advised because even a simple unintentional mistake can result in your case being dismissed. Worse, you could be accused of bankruptcy fraud. Even if you have every intention of being honest, there are certain things that filers do that catch the attention of the bankruptcy court and call into question the filer’s intentions.

What are the most common red flags that raise suspicion?

Hiding Assets, Income, or Anything Else

The last thing you want to do is hide anything from the bankruptcy court or the trustee. When in doubt, share information with your attorney and he or she can instruct you how to be open about that information when you file for bankruptcy. It’s possible to protect a variety of assets when filing for bankruptcy and you’re better off sharing as much information as possible and taking the appropriate measures of protection than you are trying to hide anything.

Delaying Proceedings

Most people want their bankruptcy to move forward as quickly as possible. After all, you enjoy the protection of an automatic stay that prevents creditors from pursuing collections once you file and your debts will be discharged or made more manageable. If you appear to be delaying the process in any way the trustee is bound to get suspicious.

Transferring Assets

Though your intentions might be in the right place, transferring assets just before or after bankruptcy proceedings have begun will definitely arouse the suspicion of the court. Even if your goal is to sell an asset and use that money to pay a creditor, your actions could be called into question if you do something too close to when you file for bankruptcy.

For more information on transferring assets in close proximity to filing for bankruptcy, check out this information from Nolo.com.

Inconsistent Information

The bankruptcy court will review your application and look for certain things that might indicate a problem.

For instance, if your social security number is listed incorrectly, your tax documents are inconsistent or have numerous amendments, or you’ve bounced a number of checks, chances are you’ll be evaluated more closely than the average filer.

Other factors that can draw negative attention from the trustee include:

  • Filing for bankruptcy multiple times
  • Lacking the usual records or account information for review
  • Accumulating significant debt without showing an income to match
  • Running up large gambling debts

Furthermore, if there are any blank spaces or incomplete answers on your bankruptcy filing forms it could arouse the court’s suspicion.

Creditors’ Response

In general, most creditors accept their risk and know there is a chance a consumer could file for bankruptcy and they’ll lose out on the money they are owed. Most bankruptcy applicants make it through their Meeting of Creditors with little to no issues.

However, if a large number of creditors contact the court and call into question discharge of debts, it could cause the bankruptcy court to take a closer look at your situation.

Ask a Bankruptcy Attorney

Finally, it’s important to understand that the reputation of the bankruptcy attorney with whom you choose to work can affect your case. You should opt for someone who is reputable and known as a professional in the business. Robert Geller is a Board Certified Bankruptcy Lawyer. If an attorney has a reputation for working with clients who have tried to commit fraud, even if you have no intention of doing so, it can reflect poorly on your case.

For more information or to speak to a bankruptcy attorney, contact the Law Office of Robert M. Geller at (813) 254-5696.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Should Seniors File Bankruptcy? Here’s 3 Things You Need to Know

Should seniors file for bankruptcy? Maybe. It all depends on their specific financial circumstances. Bankruptcy can be a great solution...
Read More

What Happens If My Spouse Dies During Bankruptcy?

Seniors declaring bankruptcy have many concerns. One of the most pressing is how their health or their spouse’s health might...
Read More

Can I File for Bankruptcy Without a Job?

Bankruptcy is often considered a tool used by people without money, without income, and without any financial hope. The truth...
Read More

Should I Use Retirement Savings to Avoid Bankruptcy? A Tampa Bankruptcy Lawyer Can Help You Protect Your Retirement Nest Egg

Withdrawing money from your retirement savings is rarely advised by financial experts, even if you are facing bankruptcy. Working with...
Read More

Can You File for Bankruptcy and Keep Your Home

Foreclosure is something that occurs after a homeowner has missed multiple mortgage payments. Working with a Florida bankruptcy attorney helps...
Read More

Is There Such a Thing as Mortgage Bankruptcy?

Your home is one of your primary concerns when filing for bankruptcy. Can you claim bankruptcy and keep your home?...
Read More

What Do You Need to Know about a Home Auction in Bankruptcy?

Home auctions are a common topic that arises when someone is faced with the prospect of bankruptcy. Bankruptcy protection for...
Read More

Can a Florida Bankruptcy Attorney Help Me Avoid Eviction

Losing one’s home is one of the most common concerns you can have when filing for bankruptcy. A Florida bankruptcy...
Read More

Covid-19 Tax Tips

The COVID-19 pandemic has affected a variety of things including taxes. These COVID tax tips can help you prepare and...
Read More

How Can a Bankruptcy Attorney in Tampa Florida Help Me If I Fall Behind on My Mortgage After Filing for Bankruptcy?

Many people find that filing for bankruptcy provides all of the financial relief they need to get back on track....
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions