Here’s an example of why it’s best to live by the rules when filing for bankruptcy. I would suspect that this isn’t an isolated case of money being hidden for use after bankruptcy.
With their debts mounting and their business failing, Michael and Laura Rees Cummings filed for bankruptcy, reporting their liabilities totaled about $370,000 more than their assets.
But prosecutors allege the Centerville couple’s 2002 petition detailing their financial situation left out one important fact: Although the two said their only property transfers in the previous year had been old clothing and toys worth a few dollars to charities, they had actually given a friend $16,000 to hold for them.
From Utah couple sentenced for bankruptcy fraud
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