Why are there so few bankruptcy fraud prosecutions?
The truth is that if you commit bankruptcy fraud, you only have about a one in a thousand chance of being prosecuted. Bankruptcy fraud cases are tough to prove, and the federal government doesn’t have the time or resources to run down the hidden assets of every thousandaire who stashed a few bonds somewhere. Also, many of the trustees appointed by the federal government in bankruptcy actions don’t have the necessary expertise in tracking and recovering stolen assets. Bottom line: Unless you’re a high roller, and the government has a pretty good suspicion that you’re hiding assets, you most likely aren’t going to be prosecuted. However, prosecutions of ordinary people do occur, and when they do, the courts come down hard on guilty parties. The benefits involved with committing bankruptcy fraud is not worth the potential risk to your finances and your freedom.
