How do they determine fraud

[Confused14]

What would constitute a reason for either the court or trustee to think there may be fraud involved in your bankruptcy? Are there certain things that stick out or specific items they look for?? Let's say they see something that seems off or you answer a question that sounds fishy to them, would they automatically assume you did something wrong if in fact you didn't?

[keepmine]

The biggest problem at the trustee level could be errors in your schedules or, missing documents like tax returns, etc. Things that need to be corrected or, an answer amplified. That's not fraud. People make mistakes. Just follow instructions and be coperative and truthfull and if you've made a mistake or, misspoke-correct at the first opportunity.

[Flamingo]

If one is honest about the information requested and provided and did not go on a spending spree in the months prior to filing and one of the purchases is a new 32' sailboat at the local marina, there should be no issues. Trustees have lots of experience and training and are far from stupid. If they suspect something, they will look into it.

[TEW]

Cash advances on a CC with no intention to repay.
Big ticket items on credit with no intention to pay
Transfer of assets house car property to a family member
Trying to hide income or assets.

[Stilltheone]

We charged a trip to Disney 3 months before filing, bought a Cadillac Escalade 4 months before filing and STILL had no issues. Although, it was pretty easy to see the drop in income in March.

Good luck!