Los Angeles Bankruptcy Fraud Defense Attorneys

Are You Being Investigated for Bankruptcy Fraud in Los Angeles?

When an individual or an organization can’t afford to pay their bills, they may choose to file for bankruptcy. Under bankruptcy proceedings, the court will create a plan to help creditors get the money they are owed. Once a bankruptcy case is complete, creditors must abide by the judge’s decision.

The court’s biggest concern in a bankruptcy proceeding is that the petitioner will attempt to conceal assets to avoid forfeiture. That’s why all documents filed in a bankruptcy are meticulously scrutinized.

If the documents don’t accurately reflect the petitioner’s assets and their true financial situation, the petitioner may be charged with bankruptcy fraud. Even if the petitioner simply made an honest mistake, they could face severe legal and financial consequence, including possible jail time.

If you’ve been charged with bankruptcy fraud in Los Angeles, it’s essential to find the right attorney to protect you from aggressive federal prosecutors. The nationally acclaimed defense attorneys at Werksman Jackson & Quinn LLP will use every available tool to defend your freedom.

Call (213) 688-0460 to schedule a case evaluation today.

What Is Bankruptcy?

Bankruptcy is a legal mechanism that allows a person or an organization that is burdened by debts to establish a repayment plan. Bankruptcy is designed to protect banks and creditors, enabling them to collect as much money as possible.

Three types of bankruptcy proceedings established by federal statute are Chapter 7, Chapter 11, and Chapter 13:

• Chapter 7 Bankruptcy, sometimes referred to as “straight bankruptcy,” is designed for individuals. The court will supervise the liquidation of assets to pay creditors.
• Chapter 11 Bankruptcy allows large organizations to continue to operate and reorganize while they negotiate a payment plan with creditors.
• Chapter 13 Bankruptcy allows debtors who have a steady income to pay off their debts in a timely manner without liquidating their assets.

What Is Bankruptcy Fraud?

Bankruptcy fraud is using “scheme or artifice” to hide your assets from creditors. You may be charged with bankruptcy fraud if the court believes that any of the documents you have submitted or the statements you have made fail to accurately reflect your financial situation.

Examples of bankruptcy fraud include:

• Failure to disclose assets
• Attempting to hide assets
• Destruction of documents
• Concealing information in bankruptcy filings
• Submitting fraudulent documents
• Bribing a court-appointed trustee
• Failure to disclose offshore accounts
• Submitting documents with incomplete or inaccurate information
• Knowingly making a false statement during bankruptcy proceedings

Defending Against Charges of Bankruptcy Fraud

Judges are very strict in bankruptcy cases, and petitioners who make simple filing errors are often accused of bankruptcy fraud. Conviction for bankruptcy fraud carries penalties that include up to 5 years in prison and fines as high as $250,000.

Bankruptcy is an extremely complex legal process. Federal prosecutors have substantial expertise and immense resources. Even small mistakes in the documents you file could be used to build a case against you.

An experienced Los Angeles white collar crime defense lawyer knows how to defend you against charges of bankruptcy fraud. The government must prove that their accusations are true beyond a reasonable doubt, which is a very high standard.

There are several compelling strategies and lines of argument your attorney can use to defend you, including:

• There was no intent to defraud
• Illegal search and seizure
• You simply made a mistake
• The government lacks evidence to prove its case
• The prosecution suppressed or mishandled evidence

We Aren’t Intimidated by Federal Prosecutors

If you’ve received a Grand Jury Summons, or if you’ve been questioned by federal investigators regarding a bankruptcy petition, you may be in serious legal jeopardy.

Our Los Angeles bankruptcy fraud defense lawyers at Werksman Jackson & Quinn LLP have an impressive record for defending clients against federal prosecution. We’ll fight to ensure the best possible outcome.

Call (213) 688-0460 to learn more today.

Additional Information

• Legal Penalties and Defenses for Fraudulent Asset Transfer