When should fraud be reported?

[oneklub]

I posted under a different topic earlier, but it got off track.

I want to ask some general questions:

If you know of a person who quite possibly committed fraud on a Chapter 7 BK petition, should you report them?

If not, what should you do?

What is the statute of limitations on reporting fraud/perjury?

Obviously I must (and will) make the final decision, but it's good to have the input of others.

Thank you.

[Help!]

What makes you believe this person "quite possibly committed fraud"? There is a misconception that everyone who files for bankruptcy is left penniless and poor, and sometimes those who don't understand the process will feel it is unfair (if not fraudulent) for someone to have filed BK but continue to drive a nice car or live in a nice home. Not much gets by BK trustees, and I think instances of fraud going unnoticed are rare.

If you feel this is criminal activity and you feel compelled to report it out of respect for the judicial system, that's one thing. If this is more about getting even with someone or is being done out of anger to cause someone to suffer (e.g., an ex) my advice is not to go down that road. The truth always floats to the surface, and I believe in karma.

[Kkole425]

You would have to plan a bankruptcy years in advance to do any sorts of fraud, in my opion. The paper work we have to turn in there really isn't anyway of getting away with anything. Not that I have tried but I have to show paychecks, taxes, property titles I can go on and on. If there was a attorney that filed I would really doubt any kind of fraud. I don't think there is a lawyer who would risk their licences for someone to keep something they shouldn't.

[JRScott]

If you are aware that someone has failed to list assets or possibly failed or transferred assets that are not revealed the proper course would be to call the Trustee of the case and give them the tip. They'll do their own research if they feel it is founded, so it is possible nothing may come of it, but it could also reveal problems.

I'm not aware of a SOL. Indeed the case could be closed and you send the information and if it proves true the Trustee can reopen the case.....

[2Bshinyandnew]

most district websites have a link to report fraud.

JMHO, Unless the information you provide will result in either the trustee finding substantial hidden assets, or is a clear case that absent the alleged fraud the debtor would have been ineligible for a CH7 discharge,(ie hiding income that would clearly make the debtor ineligible for a CH7) you probably won't get the US Trustees office to reopen the case.

If the case was a CH7 that means no assets, so if you are a creditor there is no money/assets to claim.

[dingdong]

I belive this is the poster that had issues with the amount of childsupport he is paying based on looking at his ex girlfriends petitions and the amount of expenses and income she is claiming.

I mentioned in his earlier thread that schedules are completed under attorney guidance and what he believes may be fraud may be what her attorney advised her to include in her filing.

He is trying to get his support lowered ( at least that is what I think his goal is).

Honestly, OP, why would you want to turn the mother of your child in for fraud? Make her life miserable, payback?

Leave her alone and go through the family courts to get your support lowered if that is your goal.

Just my opinion. Pretty sure you won't like it, but you asked for opinions.

[BKOnce]

Dingdong is correct.

[2Bshinyandnew]

I belive this is the poster that had issues with the amount of childsupport he is paying based on looking at his ex girlfriends petitions and the amount of expenses and income she is claiming.

I mentioned in his earlier thread that schedules are completed under attorney guidance and what he believes may be fraud may be what her attorney advised her to include in her filing.

He is trying to get his support lowered ( at least that is what I think his goal is).

Honestly, OP, why would you want to turn the mother of your child in for fraud? Make her life miserable, payback?

Leave her alone and go through the family courts to get your support lowered if that is your goal.

Just my opinion. Pretty sure you won't like it, but you asked for opinions.

I suppose if that is the goal, the OP can print out the BK schedules and motion to have them admitted as evidence in his civil case. Most states use the income-sharing model to determine each parents child support obligation, and expenses (other than child care) do not factor in anyway. Neither does any money given in the past (for whatever purpose) figure in to the future support obligation.

If the goal is to prove his baby mama lied about her finances to support his motion for a decrease in child support, he may get the bankruptcy schedules admitted in his civil case (without having to turn his child's mom in to the feds for bankruptcy fraud). Based on most state child support guideline formulas, I doubt this would have any impact since the guidelines presume that parents take care of their kids before they take care of debt. The fact that she has no debt now will have little (possible no) bearing on the child support calculation.

I can hear Judge Judy now....

[Flamingo]

[FONT="Comic Sans MS]I posted under a different topic earlier, but it got off track.

I want to ask some general questions:

If you know of a person who quite possibly committed fraud on a Chapter 7 BK petition, should you report them?

If not, what should you do?

What is the statute of limitations on reporting fraud/perjury?

Obviously I must (and will) make the final decision, but it's good to have the input of others.

Thank you.[/FONT]

You do what you think you should do. If you believe it is out and out fraud, you can report it by calling the Clerk of the Bankruptcy Court and asking how to proceed doing so for that particular case. If you can support the fraud allegations and the Trustee believes an investigation is warranted, he/she will investigate. I am sure you will have to provide documentation to prove you suspect fraud. I remember your posting in the other forum and you got some excellent input on this. No one can hold your hand as you seem to continue to look for approval in what you want to do. Either you do it or you don't.

[sophia]

If you know of a person who quite possibly committed fraud on a Chapter 7 BK petition, should you report them?

I would only report fraud if I knew 100% that the person committed fraud, not possibly committed it.

It seems to me it is almost impossible to commit fraud with the amount of proof and paperwork I had to summit to my lawyer. I just do not see it being an easy thing to do.


As others have said, if this is the mother of your children you are thinking of reporting, I say think twice about it.

As a mom & a person filing bankruptcy I can say that I would not jeopardize the future of my kids and my custody of them if I were divorced by committing fraud during a bankruptcy. Chances are you ex has the same feelings and has done nothing wrong.