Are Debts Obtained Through Fraud Dischargeable in Bankruptcy?

Bankruptcy is a very powerful tool to get your financial house back in order.  However, one type of debt that often proves confusing for clients is debt involving allegations of fraud.  Many times clients want to file bankruptcy on a certain credit card or unsecured loan but believe that bankruptcy cannot help them because the creditor is accusing them of fraud.  The client will then become fearful that the bankruptcy won’t help them, or, worse that the client may go to jail.

I can optimistically say that this is simply not true most of the time.  The bankruptcy code states that most unsecured debt (with several important exceptions) is dischargeable.  The code goes on to state that even where accusations of fraud may be present, the burden is on the creditor to come in and contest the bankruptcy to make sure that particular debt is not discharged through the bankruptcy.  This is a rare situation and even when it does happen, the benefits of the bankruptcy still outweigh the draw backs.

While most bankruptcy attorneys simply err on the side of telling their clients that bankruptcy cannot help them because there are allegations of fraud, the Law Offices of Keith D. Collier will fully educate you on the risks and benefits associated with your filing.  We will explain your best and worst case scenarios and explain how the code and case law may affect your case.  We will then zealously represent you to make sure your rights are protected from big banks and aggressive creditors.  At the Law Offices of Keith D. Collier, we practice in nothing but bankruptcy and believe in being on the cutting-edge of the law.  Whether you have a simple or complex case, the Law Offices of Keith D. Collier can help you weather these difficult financial times.