' Bankruptcy Red Flags - Law Offices of Robert M. Geller
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

Can You Cancel a Bankruptcy?

Bankruptcy is an option that can save individuals and businesses from financial ruin. However, the process can be a long...
Read More

Does Bankruptcy Clear Child Support Arrears?

Bankruptcy is a legal process that provides relief to individuals who cannot pay their debts. One common question among individuals...
Read More

Is Alimony Dischargeable in Bankruptcy?

One of the biggest concerns that people have when considering bankruptcy is the effect on their financial obligations, including spousal...
Read More

Should You File Bankruptcy Before or After Divorce?

Marriage and finances can be a tricky combination. Timing is also an issue when it comes to filing for bankruptcy....
Read More

What’s Better Bankruptcy or Debt Settlement?

The idea of being trapped in debt can be overwhelming and all-consuming. Financial struggles can happen to anyone through no...
Read More

Can I Keep One Credit Card During Bankruptcy?

The decision to file for bankruptcy is never easy. People considering this option often struggle with financial stress, debts, and...
Read More

How Does Inflation Affect Credit Card Debt?

Credit card debt can be overwhelming. This is especially true during times of inflation. What is Inflation? Inflation is a...
Read More

Can Personal Bankruptcy Affect My Business?

If you’re a business owner considering filing for bankruptcy, it’s important to understand how this decision impacts your business. From...
Read More

Can You File Bankruptcy with Money in the Bank?

Bankruptcy is a serious decision and has major consequences on your credit as well as your overall financial situation. If...
Read More

Will Declaring Bankruptcy Affect My Spouse?

Are you considering declaring bankruptcy? Are you married? If so, you may be wondering how it will affect your spouse....
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

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