Are you accused of abusing the bankruptcy system? If you are, then you are likely facing some serious consequences. When debtors are not completely honest in their bankruptcy filings or when they carry out other actions that are seen as efforts to cheat the system, this is referred to as filing for bankruptcy in "bad faith." The federal government does not take bad faith bankruptcy filings lightly and will come down hard on those who are accused of such action.

If you are facing penalties for allegedly filing for bankruptcy in bad faith, then you should immediately consult with an attorney who can help you protect your best interests. There are many situations in which debtors are wrongfully accused and are therefore undeserving of the penalties. For example, the debtor may have simply made an honest mistake while filling out his or her bankruptcy paperwork, or there may have been a misunderstanding about the individual's intentions for filing. Boca Raton Bankruptcy Attorney Alan J. Fisher has more than 25 years of bankruptcy law experience, so you can trust him to provide you with the legal guidance you need.

Call us at Alan J. Fisher, PA so we can help you find a solution to your bad faith allegations.

Alleged Actions of Bad Faith

A few examples of bad faith actions in bankruptcy cases include the following:

• Intentionally providing false information or leaving out important information in a bankruptcy filing
• Attempting to hide assets (such as by transferring valuable assets to others prior or during the bankruptcy filing)
• Purchasing luxury items directly prior to or during the bankruptcy in order to have more expenses to list in the filing
• Filing for bankruptcy for the purpose of delaying creditors
• Filing for bankruptcy without the actual intention of completing the process
• Filing for bankruptcy without the intention of following the rules of the bankruptcy court

When a debtor has a history of numerous bankruptcy filings and dismissals, that individual will likely be under greater scrutiny for a possible bad faith bankruptcy filing. The consequences for filing for bankruptcy in bad faith vary, depending on how severe the alleged act was. Here are a few of the possible consequences: dismissal of the debtor's current bankruptcy case, conversion of the debtor's Chapter 13 bankruptcy case to a Chapter 7 bankruptcy case (which can result in the debtor losing his or her non-exempt assets), and loss of the privilege to get the current debts discharged at any point in the future. Furthermore, creditors who are found to have acted in bad faith in petitions for involuntary bankruptcy can be forced to pay the debtor damages, which may even include punitive damages.

At Alan J. Fisher, PA, we can provide you with a free case evaluation, which will allow us to sit down with you and discuss your options of challenging any bad faith allegations you may be facing. Contact us today!