Filing bankruptcy comes with certain intrinsic promises, which your Securities Fraud Attorney in Tampa can explain. For example, you are promising that you will abide by bankruptcy laws so that creditors can receive as much pay as they are entitled to receive. However, if you do not keep this promise, your securities fraud attorney in Tampa can explain that you may be suspected of fraud, which may expose you to criminal penalties and fines.
Information about Bankruptcy Fraud
Some individuals may make simple mistakes because they lack an understanding of bankruptcy law. For example, there are certain activities that businesses can conduct and that they are prohibited from conducting in the months leading up to bankruptcy. For example, businesses cannot transfer ownership of their assets within the year of their bankruptcy filing. They may also be restricted from making payments to creditors within three months of their filing.
Bankruptcy Fraud Investigations
A securities fraud attorney in Tampa can explain that all communications made about the business to lenders must be honest. A business cannot secure loan proceeds under false pretenses such as by misrepresenting your business earnings in order to get the loan. It is a good idea to have a bankruptcy lawyer review financial books before the business files for bankruptcy to ensure that the business’ financial records will withstand scrutiny.
Your bankruptcy lawyer can also advise you of your need to always act in good faith. This legal standard means that you are acting in an honest manner with your creditors and the court. For example, you would not be acting in good faith if you filed a petition for bankruptcy just so you can stall on paying your creditors. Additionally, making side deals with certain creditors is also not approaching bankruptcy proceedings in good faith.
Penalties for Bankruptcy Fraud
If you are found to have committed fraud, your bankruptcy petition may be dismissed. Additionally, you may face criminal charges including potential jail time.
If you would like to learn about the steps that you should take to protect yourself and your business, contact Robert Savage by calling (813) 251.4890.