we get into legal trouble for NOT reporting Bancruptcy Fraud

I don't see a question here, and there isn't enough information to answer what I think you're asking. What is your relationship to this case?  Are you the debtor?  Are you a creditor?  Are you representing the debtor, or a creditor?   Different answers for different relationships.  If you're a creditor, it's likely in your best interest to report the bankruptcy fraud, but I don't see how you have any legal obligation to do so. Mark Markus has been practicing exclusively bankruptcy law in California since 1991.  He is a Certified Specialist in Bankruptcy Law by the State Bar of California Board of Legal Specialization,  AV-Rated by martindale.com, and A+ rated by the Better Business Bureau.