As the economy struggles to repair itself, thousands of individuals and homeowners are turning to bankruptcy as a last-ditch effort to solve their financial problems. However, there are also those who are attempting to use it in a fraudulent way to get out of existing debts. 

If you are filing for bankruptcy then you need to be aware of what could be considered bankruptcy fraud. First, and a big no-no, is concealment of assets. While you will want to have money to live on, you must disclose all of your assets. This type of fraud accounts for 70 percent of all fraud cases and can cause you serious legal troubles. While most of these cases involve someone knowingly concealing assets, it is possible to have your cause be classified as fraudulent even if you forgot to file something.

Another type of fraud is through petition mills, those businesses that claim to help tenants who are in danger of being evicted. This scheme usually operates in low-income neighborhoods and drags people into long, drawn-out bankruptcy cases that can cause the victim hundreds to thousands of dollars. 

And finally, filing in multiple states is also considered fraud, even if you are filing under your real name.

If you have questions about bankruptcy laws, contact us to get answers from a Houston bankruptcy attorney.