Bankruptcy Strategies

Answer:

An issue that comes up a lot is a bankruptcy fraud. Bankruptcy fraud would be if you were not telling me or the court, what the truth is as far as your assets, your liabilities, and your income. You have to tell the truth. When it comes to value of your assets such as a car, we can argue about that between the trustee and a judge. We’re going to try to value it as low as possible and document that because it’s going to be in your best interest. The trustee might have another view, but we would’ve disclosed it so there’s no fraud.I had a client come in the other day, and they’re going to go through a divorce. He was living in Cattaraugus County commuting to Buffalo every day. He had over 200,000 miles on his vehicle and he needed a new vehicle. He had come in early enough that his credit score had not crashed and he had good income. I immediately sent him to a car dealership to go and get a new car. It sounds like fraud, right? It’s not though, because we disclosed the whole thing. If the whole thing is disclosed, it cannot be fraud. It’s strategy and that’s a very good strategy. There are many of them, and that’s why you want to hire a very competent bankruptcy attorney.