How to Defend Against Bankruptcy Fraud Charges

The process of declaring and dealing with bankruptcy can be difficult for most professionals. Many individuals fail to fill out forms correctly and fall short of the reporting expectations set forth by state agencies. These acts may be construed as bankruptcy fraud and require a strong defense based on a clean paper trail.

Difficulty:

Moderate

Instructions

Things You'll Need

• Attorney
• Copy of paperwork
• Fireproof safe
• Copy of credit report
• Copies of bank statements
• Character references
• Past payment records

1. Acquire the services of a law firm with experience in business and corporate law. Your legal fees can go further with a firm that has an extensive research team that can help you find loopholes to defend against bankruptcy fraud charges.

2. Purchase a copy of your updated credit report to help defend against bankruptcy fraud charges. Your credit report is an independent verification of financial strength and weakness. This report should be used as a complement to other evidence to show financial hardship.

3. Compile every bank statement from the period in question to highlight your commitment to clean and accurate accounting records. Your bank statement can be placed side-by-side with company ledgers and income reports to government agencies to discredit legal charges.

4. Work with your attorney to find character references and witness to help build a case in your favor. Your co-workers, neighbors and business partners can attest to your honesty in court proceedings. It is necessary to provide access to witnesses for prosecuting attorneys who want to perform depositions on major cases.

5. Clear up jurisdictional issues if you have declared bankruptcy and owned a business with offices in other states or countries. Courts may move high-profile bankruptcy cases out of the community where a corporate headquarters is located for greater objectivity. You should challenge this movement as an effort to prevent a fair hearing by the prosecution.

6. Allow both legal teams, investigators and jurors to review your inventory and other business documents to defend against fraud charges. You should highlight the balance between sales figures and available inventory to avoid accusations of hidden assets.

7. Research past payments for alimony, childcare and other court-mandated deferments as part of your defense against fraud. These records can help determine the financial hardship that bankruptcy places you under and shows your commitment to maintaining accurate records.

Tips & Warnings

• Copy every state and federal document that you fill out during bankruptcy to defend against fraud charges. You should confirm the details on each page and have each form notarized to create a time stamp for potential court cases. Storage of these documents in a fireproof safe is ideal for easy retrieval.