Bankruptcy Fraud

Surprise.

Not all bankruptcy filings are legitimate. Sometimes the actual bankruptcy filing is a culmination of a lengthy plan, one that is designed to steal a large amount of money from the system.

As recently as ten years ago, the average amount a nefarious individual could glean from a well planned bankruptcy fraud was about $250,000. It took about a year of careful financial maneuvering, but the payoff was huge.

One scam involved running up credit card debt to over $326,000.00 just before the 6 month cut off date before filing bankruptcy. Part of the scheme involved using a business to charge the card (with no services or merchandise being transferred). What did the credit card companies do? Nothing! The lost dollars were just written off as "bad debt."

Who pays for it? WE DO!

With plenty of experience and advanced data mining software, authorities are now catching more of these fraudsters and sending them to prison. Sometimes they are able to recover some of the stolen money, but seldom do they get it all, if any.

The reason that the crooks are so successful was/is that they studied the system of banking. They knew all the next moves ... and played accordingly.

Things are improving, but bankruptcy fraud still gets ultimately funded by every honest American.

Get mad America! Fight back!