BANKRUPTCY FRAUD DEFENSE

Bankruptcy cases arise in two (2) distinct procedural contexts. Most commonly in a pending bankruptcy case, a creditor initiates an adversary proceeding, claiming that the debtor should be denied a bankruptcy discharge, because a particular debt arose out of an intentioned tort, including fraud or because the debtor fraudulently concealed or transferred assets. Such cases, called ancillary proceedings, are conducted as a separate proceeding before the bankruptcy Judge.

Both the Federal Rules of Evidence and the Federal Rules of Civil Procedure apply. The alternative, which is far less common, is a federal criminal prosecution in which a defendant is accused of perpetuating a fraud in his bankruptcy proceedings, usually understanding assets to fraudulent third parties, to defraud creditors. Such a prosecution will give rise to a federal felony conviction and significant incarceration if there is a conviction.

Any allegation of bankruptcy fraud, whether in an adversary or in a criminal prosecution is an extremely serious matter which must be aggressively defended. You need an experienced attorney, especially one who has served as a Special Assistant United States Attorney. The Weinberg Law Firm has been successfully defending bankruptcy fraud cases for thirty (30) years.