Colorado Springs Criminal Defense Lawyers Seeing More Cases of Bankruptcy Fraud

As the nation struggles to recover from a deep and protracted recession, the financial fallout is being felt in many households across America.  After long period of unemployment, business failure, or credit-card overload, bankruptcy may seem like the only option.   Unfortunately, it is not only the truly desperate that seek protection from creditors; it is also a new breed of criminals.

Bankruptcy fraud occurs when a person files for bankruptcy multiple times, or conceals assets while claiming insolvency in court.  It is also a federal offense.  Colorado Springs criminal defense lawyers are seeing more fraudulent bankruptcy filings than ever, and warn that federal officials are looking at bankruptcy filings with much greater scrutiny.  

Common types of bankruptcy fraud:

The most common type of bankruptcy fraud is known as “concealment of assets” and it accounts for more than 70 percent of all cases filed by individuals.  By intentionally omitting assets on a bankruptcy claim to protect them from liquidation, fraudulent filers are committing a serious crime. 

Another type of bankruptcy fraud is when an individual files for bankruptcy in more than one state.  This is often done by using their real names and Social Security numbers, but it is also done in false names or a combination of the two.  These criminal filers tend to list the same assets on each claim, but intentionally leave some of them out, which fraudulently protects them from total liquidation. 

If you are being charged with fraud, or another white collar crime, a Colorado Springs criminal defense attorney can help you understand your options.  Perhaps you know of someone who has filed a fraudulent bankruptcy claim, and you have a personal stake in their assets.  Either way, consulting with an experienced criminal defense attorney is an important first step.  Contact the team at Clawson & Clawson, LLP for a free consultation.