Not committing bankruptcy fraud seems like a no-brainer to most people, and Behm Law Group always counsel their clients to be honest and transparent when filing for bankruptcy in Mankato MN. But some people think that they are above the rules or can get away with the lies, and bankruptcy fraud does happen. Just the other week the Minneapolis Star Tribune, published an article about a jewelry store owner who had filed for bankruptcy and claimed that his jewelry had been sold, dismantled, or melted down. A federal bankruptcy judge claimed the store owner owed $253,000 but his creditors only received $17,500.
A Minneapolis attorney, Nauni Jo Manty, was appointed as a trustee in this case. It took four years of dogged effort on her part between both Minnesota and Wisconsin. Finally, last month, Rohricht pleaded guilty to hiding bankruptcy assets and is currently awaiting sentencing.
The moral to this story is if you think lies and complexity will thwart your creditors, guess again. If you read the entire article, you’ll be able to appreciate how much determination it took to render justice.
If you think back to when you were owed money, did you simply shrug your shoulders when it wasn’t repaid on time? Or, did you relentlessly pursue what was owed?
We guess that if you had any difficulty whatsoever, you remember the person who owed you, the amount of money owed, and the circumstances very well. In fact, your memory probably was so good that you relayed your predicament to any and all who would listen especially if you were repaid late or never at all.
The same can be said for creditors. They provided a product or service to you on good faith and expect to be paid accordingly. If you lie or hide assets during a bankruptcy proceeding, it may take some time, but justice will be served in the Mankato, MN area, too.
There’s one more thing you may want to note that’s even more valuable than any of your assets. What about your reputation? It can take many years to repair that. In some cases, maybe never.
While there can be legitimate reasons for filing bankruptcy, don’t do so under a false pretense. Creditors can be very observant. So can trustees.