By far, the most common type of bankruptcy fraud is where the debtor tries to conceal his or her assets from the court.  With today’s technology, a debtor is very unlikely to get away with this type of behavior.  Additionally, this behavior is probably why the law in Dayton, Ohio was changed to mandate the use of attorneys in Dayton Ohio for bankruptcy proceedings.  Before we move on, we want to ensure that everyone who files for bankruptcy knows:  concealment of assets will most likely be caught and you will be punished accordingly.

The second type of bankruptcy fraud is termed a ‘petition mill’.  This occurs when a third party (someone other than the debtor) files for bankruptcy in the debtor’s name.  The truly amazing thing about this type of bankruptcy fraud is that it is totally fruitless.  If a debtor owes a creditor money, the creditor can actually force the debtor into involuntary bankruptcy.  There is simply no need to file a false petition to get the same results as could be obtained legally.

We are willing to bet that you were just as amazed as we were when we discovered the second type of bankruptcy fraud.  While we understand why someone would try to hide their assets (which is not only legally wrong, but also ethically wrong), we are still perplexed by the fact that people would do something illegal that they could do legally.

If you have any other questions about bankruptcy, feel free to visit the Dayton Bankruptcy Lawyer Guide.