Bankruptcy fraud is a felony and a serious crime for which a debtor can be fined up to $250,000. Someone guilty of this crime can also be imprisoned for a period of 5 years and his discharge might be denied. While many people attempt this white collar crime purposely, some honest people are charged with bankruptcy fraud just because of their lack of knowledge. So what should you do to avoid such a perilous situation? Have a look at the details. •Basically, any move on the part of the debtor that is manipulative, deceiving and intended to cheat the bankruptcy court as well as the lenders can be seen as bankruptcy fraud. For instance, if a person does not disclose all his assets while filing bankruptcy then he might be convicted for this crime. Quite clearly, a debtor must reveal all his assets during the bankruptcy case and transparency must be maintained during the whole process. •If a debtor tries to bribe his creditors or attempts to threaten them by any means then it can come under bankruptcy fraud. Let’s have an example. Some people blackmail their creditors by saying that they and their associates would stop doing business with the organization if they opt for a creditor claim in the bankruptcy case. This will very well be regarded as bankruptcy fraud. So understand that it is not at all a wise decision to threaten your creditors in any way whatsoever before or at the time of bankruptcy. This could be used against you by the creditors. •In case you refuse to cooperate with the bankruptcy court, it could be deemed as bankruptcy fraud. For instance, if the court asks you for certain documents like your bank statements or some records related to your properties then you must provide it. Otherwise it will seem to the court that you are trying to hide things and therefore you would be charged of bankruptcy fraud. If can’t submit any necessary document required to submitted in the court then your attorney must show the court some valid reason. •Stop using your lines of credit when it is apparent that you are about to file bankruptcy. If someone spends huge amount of money through your credit card just before bankruptcy then it will be treated as bankruptcy fraud by the court on ethical grounds. This is because the concerned person it using credit being completely aware that his debts will be discharged; so he would not need to pay it back. Bankruptcy fraud can cause you trouble when you situation is already quite bad. So you need to be aware of the above mentioned points so that you can stay clean.