When an individual or a business goes through a bankruptcy, there is the temptation to hide assets in order to escape having to pay off creditors. This is such a concern that the Justice Department of the United States gives instructions on how to report someone who may be involved in bankruptcy fraud.
The first thing that is required is a written summary detailing the alleged event. This is to establish the time, place and exactly what happened. Written documentation is very important because it can establish the fraud in a court of law. It is much stronger than a simple accusation by one person who may have a personal grudge against someone else. A person who is owed money by a business going into bankruptcy may try to make trouble for the owners of the company by reporting that they are committing fraud.
- Write down is the name and address of the person or business to be reported.
- The name of the bankruptcy case, along with the number of the case and where it was filed. Include information to exactly identify the people or business involved so there is no doubt or confusion.
- Give information about the alleged fraud, when it took place and how this information was attained. Always submit supporting documents along with the report.
- Detail all of the assets being hidden by type and dollar value as well as the amount of unreported income and anything that was omitted or intentionally undervalued. Include your contact information including name, address, email address and telephone number. It is not a requirement to identify youself, but can be very helpful should the Justice Department decide to investigate the matter.
Making an accusation about bankruptcy fraud is a serious matter. It should only be considered if the facts are present to prove it. Being angry at someone for not paying their debts is no reason to falsely report them for this crime. The Justice Department will take your information seriously and will take the appropriate steps according to the documentation provided.
To report suspected bankruptcy fraud, please visit, “http://www.justice.gov/ust/eo/fraud/“.
1. Avoiding Bankruptcy Fraud