Bankruptcy Fraud And Cash Advances
Bankruptcy has become very common in the United States. People are just taking the economy for granted, and filing for bankruptcy even when it is not required for them. Several people are using bankruptcy as an excuse from debts. In fact, not everyone is in a bad shape due to the recession. |
It is easy for a person, who has just lost their job, to file for bankruptcy. They can transfer their assets to the names of family members, including bank balances and assets. They can later show that they are bankrupt and file for bankruptcy. Once a person files for bankruptcy, banks or creditors cannot approach them or call them frequently. They have to do it through a court appointed person. It becomes difficult for the creditors to access the debtor.
Cash advances on the other hand are debts taken against a pay check in most cases. Any person, who has a credit check account and steady source of income, can actually try for a cash advance. It does not matter if they have a bad accredit score. The cash advance is given on the guarantee of a paycheck, and the amount automatically gets debited the following months. People, who take cash advances, are also able to fake bankruptcy at the same time.
However, once a creditor believes that the debtor is a fraud by filing bankruptcy, they can start an adversary in the court. There will be investigations against the debtor by the creditors right from the time he or she files for bankruptcy.
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