Kansas Bankruptcy Attorney Discusses Avoiding Bankruptcy Fraud and Preserving Assets in Kansas and Missouri

When a family faces staggering debt, it is often accompanied by collection agencies making threatening phone calls, process servers at the door trying to serve lawsuits, and wage garnishments which may make it impossible to meet basic household expenses.  A Kansas Chapter 7 or Chapter 13 bankruptcy can sometimes provide a life raft to rescue you from a sea of debt.  A Chapter 7 or Chapter 13 bankruptcy may preserve your family residence, protect your bank accounts and pay check and help you get back on the road to financial recovery.  A qualified Kansas bankruptcy attorney can assist you in complying with bankruptcy rules, procedures and disclosure requirements so that you avoid allegations of bankruptcy fraud and the risk of having your Chapter 7 or Chapter 13 bankruptcy dismissed.  Many people who make the mistake of handling their own bankruptcy make critical miscalculations that may constitute bankruptcy fraud, which may have very serious and negative results.

A person who attempts to conceal assets in one’s bankruptcy filing may be guilty of bankruptcy fraud which is a felony under Federal law and is punishable by a fine of up to $250,000 and/or five years in prison.  Hiding one’s assets when filing a bankruptcy is one of the most prevalent types of bankruptcy fraud, and includes “giving” an asset to a relative or friend in an attempt to put it beyond the reach of one’s creditors or the jurisdiction of the bankruptcy court.  Many people who attempt to file a Chapter 7 or Chapter 13 bankruptcy without legal advice or representation unwittingly commit this type of bankruptcy fraud without realizing that it is a crime and can jeopardize both their freedom and their ability to obtain bankruptcy relief.  A criminal prosecution for bankruptcy fraud may result in incarceration, financial penalties and dismissal of your Chapter 7 or Chapter 13 bankruptcy.

The bankruptcy trustee can examine and reverse any transaction that is deemed fraudulent within a year of your bankruptcy filing.  The trustee will carefully scrutinize significant transfers of assets that occur during this time frame particularly if the transfers are made for grossly unequal value or to an individual or business entity closely connected to the person filing bankruptcy.  An experienced bankruptcy attorney will be aware of these issues and can advise you about the timing of your bankruptcy.  There are also a lot of exemptions that permit a person filing bankruptcy to keep assets.  A bankruptcy attorney can advise you on how to maximize your use of these exemptions and about legal ways to protect your assets by converting non-exempt assets into exempt assets.

Some people seek assistance from non-attorneys so that they can obtain modest short-term savings.  However, typing services and paralegals are not qualified to give legal advice and may end up costing a person more because they fail to prepare a bankruptcy correctly.  They also cannot give sound advice about protecting assets and maximizing the use of exemptions or ensuring that procedures are met so that a bankruptcy is not dismissed.  These individuals lack the experience and knowledge to properly advise you on legal methods to protect assets and reduce your exposure when filing a bankruptcy.  The cost of defending a criminal bankruptcy fraud case is very costly.  A free no obligation initial consultation with a bankruptcy attorney today may save you grief and help you protect valuable assets.  A person who attempts to handle a bankruptcy without an experienced bankruptcy attorney may end up facing charges of bankruptcy fraud or surrendering assets that could have been preserved.

Contact Us

We are pleased to handle bankruptcy cases in Kansas and Missouri, Johnson County and the surrounding counties in the Kansas City metropolitan area. Weekend and evening appointments are available. To reach our Olathe law office, call 913-782-7075, or contact us online.

Weston R. Moore, Attorney at Law
13401 South Mur-Len Road
Suite 100
Olathe, KS 66062
Phone: 913-782-7075
Fax: 866-896-0287
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