QUESTION
What can be done to this person who is committing bankruptcy fraud?
Asked on Dec 01st, 2014 on Bankruptcy - Idaho
More details to this question:
Someone I know is putting assets in his kid's name, opening a company, using the assets in the bankruptcy to operate, not telling the courts, sold his house, that was listed in the bankruptcy to himself in order to pull it out of chapter 7. The trustee doesn't know about his wrong doings.
11 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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You can inform either the trustee in his bankruptcy case or the US Trustee's office in your district. It would be best if you have evidence of your allegations.
Answered on Dec 02nd, 2014 at 11:02 PM
You are welcome to contact the office of the United States Trustee with your information. The Office of the US Trustee is a division of the US Justice Department (as is the FBI) and they investigate bankruptcy crimes. Oh and it is possible to remain anonymous.
Answered on Dec 02nd, 2014 at 6:41 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Report it to the trustee. If you are a creditor, you can file a law suit.
Answered on Dec 02nd, 2014 at 6:40 PM
The office of the U.S. Trustee program has a website which will direct you to the appropriate local office to which you should report what you know. The UST is under the supervision of the U.S. Department of Justice, in other words, the U.S. Attorney General, and they are charged with investigating and prosecuting cases of fraud.
Answered on Dec 02nd, 2014 at 6:40 PM
Debt Relief Attorney serving Anaheim, CA
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Marlin Branstetter Attorney at Law
Inform the United States trustee and the bankruptcy trustee.
Answered on Dec 02nd, 2014 at 6:39 PM
Contact the U.S. Trustee's Office for the State where the BK was filed. Send a copy of your detailed letter to the assigned Interim Chapter 7 Trustee. Follow up with a phone call, and make yourself available to come into their office to discuss same. Our Bankruptcy system only works if everyone is truthful and above board. Good luck!
Answered on Dec 02nd, 2014 at 11:27 AM
You have the option of reporting this person to the Trustee assigned to the case or to the United States Trustee's office in your region. I would start with the Trustee assigned to the case to make sure the debtor has not had permission to purchase assets from the bankruptcy estate.
Answered on Dec 02nd, 2014 at 11:26 AM
Bankruptcy Attorney serving Charleston, SC
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Davis Law Firm
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You can always contact the case Trustee or the Office of the US Trustee. Both of these persons are interested in trying to ferret out fraud and abuse. What you are describing may be perfectly proper. Do not accuse the debtor(s) of fraud, simply ask questions about what you believe to be happening. Even in bankruptcy, a debtor may be allowed to retain assets and continue to work. A debtor can transfer assets that are exempt to third parties in many situations. It would not be proper to always do this. You should contact one or both of these offices so you can have your concerns answered.
Answered on Dec 02nd, 2014 at 11:26 AM
If you're willing to be a witness in a case against the person you think is committing fraud you can contact the trustee's office directly and give them whatever information you have.
Answered on Dec 02nd, 2014 at 11:25 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Notify the trustee and/ or the U.S. Attorney. Of course be certain of the facts. Send them documentation or tell them where the documentation may be found. Complete disclosure by debtors is absolutely necessary for bankruptcy to remain available to those who need it The wrongdoer will likely be denied a discharge. He could also face criminal charges for BR fraud.
Answered on Dec 02nd, 2014 at 11:25 AM
bankruptcy Attorney serving Paul, ID
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Paul N. J. Ross Law, PLLC
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Call the Trustee's office. (S)he would be happy to know and look into the issues.
Answered on Dec 02nd, 2014 at 9:49 AM