It it fruad to conceal that you own property from the banruptcy court? Even more importantly, say someone co-owned a piece of land (without a homestead on it) and intentionally lied about owning it so they wouldn't lose it....then I report them....what would happen to the land? Would it be taken? Forced sold? What about the other co-owner. What is that person's rights?
2007-04-19 16:24:27 · 5 answers · asked by s s 3 in Politics & Government ➔ Law & Ethics
If the Bankruptcy court finds that someone has intentionally lied about assets that they own, they would dismiss the bankruptcy case, making the party fully liable to all their creditors, and possibly file perjury charges against them. The property that is co-owned cannot be forced into the bankruptcy, however, the court could reserve the right to place a lien as to the bankrupt party's share to pay debtors once the property is sold or transferred.
2007-04-19 16:30:06 · answer #1 · answered by soontobe 2 · 2⤊ 0⤋
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RE Bankruptcy fraud?
It it fruad to conceal that you own property from the banruptcy court? Even more importantly, say someone co-owned a piece of land (without a homestead on it) and intentionally lied about owning it so they wouldn't lose it....then I report them....what would happen to the land? Would it be taken? Forced sold? What about the other co-owner. What is that person's rights?
2014-10-05 10:38:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It is fraud.
The outcome result would be that the Trustee could object to the Debtor's Discharge under the grounds that they provided false information and deliberatley withheld information in order to defraud the Bankruptcy Court and their creditors.
The person can be pursued for their criminal actions as the schedules are fiuled under the penalty of purjury...essentially lying under oath in attempt of fraud.
I would suggest that they amend their schedules immediately admitting their mistake as in most cases, the Trustee will check this anyways. It is better to fess up or remember the current situation before the Trustee finds out and there are consequences.
If it is co-owned, and the co-owner is not filing Bankruptcy, only the owner's (the person filing) interest is property of the estate. If there is equity, the Trustee may offer the Debtor or the Co-owner the option of "buying back" the interest from the estate.
If it is you, Amend your schedules. If you are the Co-owner, advise your friend/other to amend before its too late. If you are a Creditor, you should report this to the Trustee. If you are
a friend to the Debtor, advise them to amend.
Good luck with this.... I hope the right decision is made to avoid consequences....
2007-04-22 19:43:44 · answer #3 · answered by scboi23on24 2 · 0⤊ 0⤋
It would invalidate the BK, and the fraudulent owner could do some federal prison time. As for the co-owner, they aren't involved in the BK, and they still have their rights to the property.
2007-04-19 23:32:30 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Yup, it is fraud, and it's a felony. What is done with the property depends on the individual situation and the debts owed.
2007-04-19 23:32:30 · answer #5 · answered by cyanne2ak 7 · 1⤊ 0⤋