Credit Card Use Patterns May Constitute Fraud

• Maxing out credit cards with spending or cash advances and then filing for bankruptcy may be considered fraud.
  
  

Hiding Assets is Unallowable in Bankruptcy

• Any non-exempt assets may be liquidated to satisfy the debt. Hiding those assets, thus making them unavailable for liquidation, constitutes fraud and may be cause for case dismissal without refund of fees.
  
  

Transferring Assets Constitutes Fraud

• Transferring assets to friends or family is much the same as hiding them. Any attempt on the part of the debtor to misrepresent the full picture of her financial condition can be considered fraud.
  
  

False Statements at the 341 Meeting

• Bankruptcy filers must attend a 341 or creditors' meeting and testify under oath about the facts of the case. Deliberate misstatements are considered fraud.
  
  

Seek Advice to Keep Bankruptcy Above Board

• Bankruptcy filers are required to seek credit counseling prior to filing. Although not required, it is wise to seek the advice of an attorney. Consultations are often free and may save you from charges of fraud.