Des Moines, IA (Law Firm Newswire) April 8, 2011 – Most people who file for bankruptcy do so because they have no other choice. However, bankruptcy fraud is on the increase, making courts even more suspicious of legitimate petitioners.
“Unfortunately, even though the vast majority of those who have made the difficult decision to file for bankruptcy are legitimately in a financial bind, bankruptcy fraud is on the increase, something which is not good news. The more fraud there is, the less courtesy and consideration legitimate petitioners get. In other words, those really needing help are now being regarded with more suspicion,” said Kevin Ahrenholz, an Iowa bankruptcy lawyer.
Even though a bankruptcy will dog a person’s footsteps for many years, the fact remains that the bills are paid and the financial future is a lot brighter. This one fact alone has prompted many to commit bankruptcy fraud.
“How do people commit bankruptcy fraud? Some of the methods used are quite sophisticated and difficult to track down. Typically, they hide most of their assets by either giving them to someone else during the course of the bankruptcy proceedings or will just not admit to having them,” Ahrenholz said.
The assets they do declare are then sold to pay off their debts. When the whole thing is over, they simply gather up the rest of their property and get on with their life – their new, debt free life. Obviously, this has come at the expense of someone else’s actual and real dire need to declare bankruptcy. While this is not the only method used to commit fraud, it is the most common one and the easiest to pull off.
Bankruptcy fraud hurts those who really have no other options. The fraud artists are using the system to their advantage and tying up resources that others could desperately use. If and when someone pulling an unethical and illegal stunt like this gets caught, it makes the court system regard those who file with a greater degree of suspicion. For those who are in a legitimate position to file bankruptcy, a jaundiced point of view on their petition from the courts is the last thing they need. They have already been through enough.
“If you have a legitimate need to file for bankruptcy, give my office a call and we will walk you through the process. Your first consultation with us is free. The advice will point you in the right direction for a fresh start on a new, debt free life,” Ahrenholz said.
309 Court Ave., Suite 805
Des Moines, IA 50309
Offices in Des Moines, Cedar Rapids, Waterloo, Mason City, and Vinton.