18 U.S.C. § 157 — Bankruptcy fraud

submitted 32 years ago by Pub. L. 103-394 to r/title-18-CRIMES-AND-CRIMINAL-PROCEDURE · 121 words · no verdicts yet

in plain englishAI-generated · not legal advice

It is a federal crime to plan a scheme to defraud someone and use a bankruptcy case to carry it out. This includes filing a fraudulent bankruptcy petition, filing a false document, or making a false claim in a bankruptcy case. A conviction can bring a fine, up to five years in prison, or both.

This section punishes someone who has planned, or is planning, a scheme to defraud someone, if they use a bankruptcy proceeding to carry out or hide that scheme. Three kinds of acts count, when done for that fraudulent purpose: (1) filing a bankruptcy petition, including a fraudulent "involuntary" petition, one filed by creditors against a debtor, under section 303 of title 11; (2) filing any document in a bankruptcy case; or (3) making a false or fraudulent statement, claim, or promise connected to a bankruptcy case — this can happen before or after the petition is filed, or even in connection with a proceeding falsely claimed to be pending. Anyone who does this can be fined under this title, imprisoned for up to 5 years, or both.

the actual law source: uscode.house.gov ↗public domain

A person who, having devised or intending to devise a scheme or artifice to defraud and for the purpose of executing or concealing such a scheme or artifice or attempting to do so—

(1)

files a petition under title 11, including a fraudulent involuntary petition under section 303 of such title;

(2)

files a document in a proceeding under title 11; or

(3)

makes a false or fraudulent representation, claim, or promise concerning or in relation to a proceeding under title 11, at any time before or after the filing of the petition, or in relation to a proceeding falsely asserted to be pending under such title,

shall be fined under this title, imprisoned not more than 5 years, or both.

Source credit: (Added Pub. L. 103–394, title III, § 312(a)(1)(B), Oct. 22, 1994, 108 Stat. 4140; amended Pub. L. 109–8, title III, § 332(c), Apr. 20, 2005, 119 Stat. 103; Pub. L. 111–327, § 2(b), Dec. 22, 2010, 124 Stat. 3562.)

history & why it existsrecord from the source credit

1994Enacted · Pub. L. 103-394 · 108 Stat. 4140
2005Amended · Pub. L. 109-8 · 119 Stat. 103
2010Amended · Pub. L. 111-327 · 124 Stat. 3562

A history note hasn’t been published yet. The record shows enactment by Pub. L. 103-394 on 1994-10-22.

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