Bankruptcy Fraud is Serious Business

Bankruptcy fraud is a crime and can include: concealment of assets, concealment or destruction of documents, conflicts of interest, fraudulent claims, false statements or declarations, and fee fixing or redistribution arrangements. Falsifications on bankruptcy forms often constitute perjury. The new bankruptcy laws which are more generous to honest debtors were never intended to allow criminals to commit bankruptcy fraud.

Recently posted news on the internet stated, “John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Edward W. Fedosky, 56, Madison, Wisconsin, was sentenced Friday, May 27, by U.S. District Judge Barbara B. Crabb to six months in prison for lying under oath at a bankruptcy hearing. Fedosky pleaded guilty to this charge on March 15, 2011.” 

One news source said, “in sentencing Fedosky to six months in prison, Judge Crabb rejected Fedosky’s request for a sentence of probation. Judge Crabb noted that while Fedosky looked on the outside like someone who is successful, in fact, he simply does not want anyone telling him what to do. The judge described Fedosky as a person with no personal accountability. Judge Crabb pointed out that Fedosky’s $250,000 student loan debt also suggested that he figured that the taxpayers would cover his debts while he went out and spent money on other things. Judge Crabb stated that Fedosky consciously lied during his bankruptcy and concluded that a sentence of probation would not be appropriate. Fedosky’s prison term will be followed by a two-year period of supervised release.” 

Filing for bankruptcy protection is supposed to allow honest debtors a legal means to escape a tough financial situation. Federal bankruptcy laws are designed to protect both the creditor and the debtor and must be administered fairly to accomplish this goal. 

Both the creditors and the debtors are expected to abide by the existing bankruptcy laws. If done properly, the filing will end in a satisfactory discharge on all issues, but when one side or the other tries to cheat the process, this is called bankruptcy fraud. Bankruptcy fraud is a crime, but bankruptcy laws can be complicated and it might be necessary for you to contact a bankruptcy lawyer for help. 

If you need relief from the stress of debt and you live in or around the metropolitan counties of Middlesex, Somerset, or Hunterdon, New Jersey, contact us at .We will help you find a bankruptcy attorney in your area who will answer your bankruptcy questions.

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