For many, making the decision to file for bankruptcy is something that is not taken lightly. While this process can be incredibly beneficial in alleviating overwhelming debt, you’ll find that filing can put certain assets at risk of seizure and liquidation. As such, you may wonder if there’s anything you can do to protect these assets. However, it’s critical to understand that there is a fine line between protecting your assets and bankruptcy fraud. As such, understanding what constitutes bankruptcy fraud in California and the penalties you can face if charged with this crime is critical. In addition, you’ll discover the importance of working with a Sacramento criminal defense lawyer to help you explore your legal options during this time.
What Is Bankruptcy Fraud Under California Law and What Penalties Can I Face?
Generally, any time you intentionally lie, omit information, or conceal property during the bankruptcy process, it can constitute fraud. Many people who file for bankruptcy are worried about losing all of their assets, so they transfer assets to friends and family, do not report certain bank accounts when filing, or manipulate documents to undervalue certain property. However, this all constitutes fraudulent activity under the law and can result in serious charges.
Bankruptcy fraud is an incredibly serious crime, as the federal government will oversees this process. As such, if you are charged with this offense, you will face federal criminal charges. Generally, this warrants up to five years in a federal prison for each offense, with potential fines of up to $5,000.
In addition to jail time and fines, you’ll also find that your bankruptcy case will likely be dismissed. This means that you will not receive the discharge of your debts, and you will be held legally responsible for repaying them. Additionally, the automatic stay protection will be lifted, meaning creditors can resume collection efforts like wage garnishments and lawsuits against you.
What Potential Defenses Might I Be Able to Use?
If you are charged with bankruptcy fraud in California, it’s important to understand the potential defenses you may be able to utilize. Generally, one of the most common defenses is to show that you had a lack of intent. In order to be convicted, the prosecution must demonstrate that you intentionally and knowingly attempted to defraud the court and your creditors. However, if you can prove that this was an honest mistake, you may be able to avoid a conviction and receive an acquittal.
You may also be able to show that the prosecution does not have the evidence necessary to secure a conviction. For example, if they cannot show anything other than circumstantial evidence that you have committed fraud, or the evidence they use was obtained illegally, your attorney can help defend you from these unfair charges.
If you have been charged with bankruptcy fraud in California, it’s imperative to connect with an experienced attorney as soon as possible to explore your legal options. Our team understands how difficult these matters can be to navigate, especially because the penalties you can face are incredibly harsh. As such, we will do everything possible to help you fight for the best potential outcome. Contact us today to learn more.
