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Michigan Federal Bankruptcy Fraud Lawyer 

Filing for bankruptcy in the United States can relieve people of overwhelming debt and start them on a new financial path. However, some people take advantage of bankruptcy relief by concealing their property, failing to disclose important information or intentionally misleading bankruptcy trustees.  

Bankruptcy fraud, as this is known, is considered a federal white-collar crime, which may mean significant fines, extensive time in a federal prison, and a permanent criminal record. 

If you have been charged with federal bankruptcy fraud in Michigan, it may be beneficial to speak with a Michigan federal bankruptcy fraud lawyer who is admitted to practice in federal court.  

A knowledgeable attorney can fight to protect your rights, guide you through the complex legal process, and serve as your advocate. With the support of an attorney, you may face lesser penalties or your charges may be dropped altogether. 

Types of Michigan Federal Bankruptcy Fraud

There are four main types of federal bankruptcy fraud: 

  • When a person intentionally files an incorrect, incomplete, or fraudulent form. 
  • When a person knowingly files for bankruptcy multiple times or in multiple states. 
  • When a person bribes a court-appointed trustee. 
  • When a person hides valuable assets and property to avoid forfeiture.  

The most common type of bankruptcy fraud in Michigan is concealment of property, which could include hiding large amounts of cash in a safe deposit box, asking friends or family to hide expensive jewelry or artwork, and lying about owning certain valuables. 

To be convicted of bankruptcy fraud in Michigan, the government must prove that the individual knowingly and fraudulently misrepresented an important fact with intent to deceive, which is often difficult. To combat this, prosecutors may charge individuals with other crimes, such as identity theft, money laundering, and other forms of financial fraud, which may be easier to prove.  

An experienced Michigan bankruptcy fraud lawyer can provide solid defense strategies to these accusations and work to protect the reputations of individuals involved. 

Consequences of Bankruptcy Fraud

Penalties for federal bankruptcy fraud can be severe. For example, Abby Lee Miller of the popular Lifetime TV series “Dance Moms,” was recently sentenced to one year and one day in federal prison and forced to pay a $40,000 fine after being convicted of bankruptcy fraud. 

Under 18 U.S. Code Section 152, a person who commits bankruptcy fraud may face up to five years in federal prison, a fine of up to $250,000, or both.  

Beyond imprisonment and fines, a bankruptcy fraud conviction makes it impossible for a person to hold a professional license, which means they cannot become a doctor, layer, nurse, or CPA.  

A conviction may also negatively impact a person’s reputation, eligibility to vote in a federal election, ability to own a firearm, or ability to enlist in the Armed Forces. 

Talk to a Federal Bankruptcy Fraud Attorney in Michigan Today

Since bankruptcy fraud is a federal crime, the consequences can be lasting. That is why it is essential to get advice from a qualified Michigan federal bankruptcy fraud lawyer who is experienced in both financial and criminal law.  

A bankruptcy fraud attorney in Michigan can carefully investigate the facts of your case, build a strong defense based on evidence and the law, and fight aggressively for the best possible outcome.