It is an unfortunate fact that every year some individuals choose to break the law and commit bankruptcy fraud. While some instances of bankruptcy fraud occur due to accident or inadvertence, in other cases individuals in New York and across the rest of the country deliberately violate legal mandates to follow proper consumer bankruptcy procedures. A popular reality star is now in jail for committing crimes related to bankruptcy.
Teresa Giudice, a former cast member in the Real Housewives reality television series, was convicted of committing bankruptcy fraud last year. She with her husband will each spend time in prison, though the judge who ruled on their matters allowed them to stagger their sentences in order to care for their four children. In all, Giudice was convicted of not sharing information on all of her assets during bankruptcy proceedings and also falsifying documents in order to obtain millions of dollars in loans.
While many people face financial challenges, this story demonstrates the unfortunate lengths some people will go to avoid their obligations. Breaking the law should never be the answer to remedying money troubles. Individuals who feel that they cannot get out from under their economic burdens may always investigate legitimate and legal uses of the bankruptcy process.
Bankruptcy offers debtors a chance to reorganize or reduce their outstanding financial responsibilities in order to start fresh and on solid financial footing. Attorneys who practice bankruptcy law can help interested parties learn if and what type of bankruptcy might best serve their interests. As for the Giudices, one can hope that others will learn that bankruptcy fraud is a real crime with serious consequences and should be avoided.
Source: San Jose Mercury News, “Teresa Giudice goes to prison Monday morning,” Tony Hicks, Jan. 5, 2015