Bankruptcy Fraud And Its Effects On The Lower Income Brackets

1674 Words Sep 20th, 2015 7 Pages
Crimes are perceived to be committed by those in the lower income brackets that are in desperate needs financially. History, however, has been shown that those who are financially wealthy take advantage of opportunities that could help further destroy the lower and middle class as well by using bankruptcy fraud. The average white collar worker has more resources and power to deprive people, especially when it comes to the basic necessities in life. The basic need of having good credit is the dream everyone wants in order to be financially strong. Since the use of bankruptcy fraud has become notorious in today’s society, gaining proper knowledge with regards to the effects and penalties of the crime helps build awareness and deter criminals from victimizing innocent people. Bankruptcy fraud starts out with the bustout effect. In the eyes of many americans, bankrupty is used as a way to walk away from paying bills in a responsible manner. Furthermore, the use of filing bankruptcy may give individuals the opportunity to pay back less than the money owned or eliminate the debt completely as a way to organize their finances and start from scratch (Brown, Netoles, Rasnak and Tighe, 1999). Unfortunately, as useful as bankruptcy may be in the eyes of many, it could also be abused if it gets in the wrong hand. When bankruptcy gets in the hands of the wrong person, it could result in bust outs. Bust outs are hard to detect at times unless a credit report is requested prior to…
Open Document