Identifying Bankruptcy Fraud
Bankruptcy fraud has become a common occurrence and anyone is susceptible to do it. It is one of the biggest possibilities that stand in front of us today. In 2008, supposedly more than one million cases were filed nation wide. Among these nobody knows how many of them were genuine. |
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In order to validate the claims, the United States Department of Justice has appointed an agency. The agency operates with the help of hotlines and other varied sources to investigate bankruptcy frauds. The court appointed trustees look into the proceedings.
However, even if a person has filed for bankruptcy last year, their case can still be investigated this year under a revision act. A debtor's audit is conducted based on criminal referrals. Someone could have reported a certain person of having committed a supposed bankruptcy fraud. When the fraud investigations are going on, the person who filed for bankruptcy will not come to know of it. Most investigations are conducted in the background.
Nearly 30 percent of cases investigated turned out to be a misstatement among the bankruptcy cases filed in 2008. A material misstatement can amount to fraud. Review of bankruptcy cases takes some time, and there is no exact way of identifying a fraud. However, when someone spots misstatements, it is possible that the person, who filed for bankruptcy, could have committed a fraud. Such cases are further investigated so that the facts can be revealed.
Several cases of bankruptcies are under investigation today. People who want to report a bankruptcy fraud can send an email to USTP.Bankruptcy.Fraud@usdoj.gov.
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