Bankruptcy Investigations

Bankruptcy fraud is a federal felony offense that may include concealment of assets or debts from the bankruptcy petition. Failure to include an asset when filing bankruptcy is one of the most common forms of bankruptcy fraud, and often includes “giving” a valuable asset such as a car, to a relative or friend to protect it from liquidation or to obscure the asset from a judgment creditor.

There are two types of fraudulent transfers in bankruptcy law. The first, actual fraud, involves the intent to defraud creditors, the other, sometimes is called constructive fraud, it involves a transfer, which is made in exchange for grossly inadequate consideration. Actual fraud is committed when 1) a transfer is made within two years before the date of the filing of a bankruptcy petition and 2) is made with the intent to hinder or defraud a creditor.

If you are owed money or have a judgment against a debtor that filed a petition for protection in bankruptcy court and you believe the debtor is collectable, Due Process Investigations can investigate your claim and provide you with an accurate accounting of the debtor’s assets and financial holdings. It the investigative process identifies assets that were fraudulently conveyed, the report would then be forward to the trustee assigned to the bankruptcy case for further sanctions against the petitioner.