Bankruptcy can offer a lifeline when you’re overwhelmed by debt—but if you’re accused of hiding assets or submitting false information during the process, that lifeline can quickly turn into a legal nightmare. Bankruptcy fraud is a serious federal offense, and even unintentional mistakes in your paperwork or financial disclosures can lead to criminal charges. For anyone facing allegations, early action is crucial. In this blog, we’ll explore how bankruptcy fraud charges happen, why timing matters, and how Simmons Wagner, LLP helps clients throughout Southern California protect their rights and futures.
What Is Considered Bankruptcy Fraud?
Bankruptcy fraud includes a wide range of actions—some intentional, some accidental. Common allegations include hiding assets, failing to disclose income, falsifying documents, or transferring property to avoid having it included in the bankruptcy estate. Even paying back a friend or family member before filing can raise red flags and be considered preferential treatment or concealment of assets.
In some cases, people are accused of fraud simply because they misunderstood the filing requirements or relied on bad advice. That’s why intent is such a major factor—and also one of the most commonly disputed aspects of these cases.
Why the Government Moves Quickly
Once the bankruptcy court or trustee suspects fraud, the case can escalate quickly. Federal investigators may begin reviewing your finances, requesting bank records, or contacting your associates—often without notifying you until they’ve gathered substantial information.
By the time you find out you’re under investigation, a case might already be in motion. That’s why having a defense attorney involved early can make a significant difference. Your lawyer can clarify intent, correct potential misunderstandings, and sometimes even prevent charges from being filed at all.
How a Skilled Attorney Can Challenge the Case
One of the most effective defenses in a bankruptcy fraud case is demonstrating that there was no intent to deceive. At Simmons Wagner, LLP, we examine every aspect of the government’s evidence—from financial records to the bankruptcy petition itself—to identify inconsistencies, accounting errors, or areas where you may have acted based on advice from someone else.
We may also work with forensic accountants to reconstruct your financial picture and provide a clearer context for the decisions you made during the filing process. In some cases, this can lead to reduced charges—or full dismissal of the case.
What’s at Stake If You’re Convicted
A bankruptcy fraud conviction can result in up to five years in federal prison and fines up to $250,000. But the consequences often go far beyond the sentence. A conviction can damage your professional reputation, limit your employment options, and follow you for years to come—especially in fields where financial responsibility is critical.
You don’t have to wait until charges are filed to take action. The earlier you involve a defense attorney, the better your chances of avoiding these long-term consequences.
When to Contact a Lawyer
If you’re being investigated or even suspect you might be, do not wait. Speaking with investigators without legal counsel—or attempting to fix paperwork after the fact—can make matters worse. Instead, call a criminal defense attorney with experience in both white collar crime and federal court proceedings.
At Simmons Wagner, LLP, we work quickly and discreetly to protect your rights, challenge the government’s narrative, and guide you through every phase of the case. Whether you’re under investigation or already facing charges, we’re ready to fight for the best possible outcome.
Call Simmons Wagner, LLP at (949) 439-5857 today to schedule your confidential consultation. The right help—at the right time—can make all the difference.