Even though a bankruptcy filing will remain on your credit report for 10 years, and make the process of securing loans, applying for credit cards or engaging in financial trading in the future almost impossible, there's a good possibility that after you've filed, your debts will be eliminated.
Advancements in bankruptcy fraud has, in turn, caused the government to engage in a relentless crackdown on this type of fraud, which will - hopefully - put an end to the numerous and bogus bankruptcy filings, and result in an increasing number of people getting back on their financial feet in a sound manner.
Bankruptcy fraud can be accomplished in several ways, and a number of them are difficult to catch.
For example, when a person files for bankruptcy when it's not really necessary, the person will attempt to conceal their assets by giving them to someone else temporarily, and neglecting to disclose them.
Those assets the person truly has are sold and their debts are forgiven.
Once the bankruptcy process is completed, the person simply retrieves their property from whoever had it, and now the person is in much better position than (s)he was previously, despite the blemish on their credit report.
If you have enough property and you're somehow able to conceal it from the government, despite the fact that a bankruptcy filing is on your credit report, you can still find ways to purchase items because you still have the assets.
Bankruptcy fraud is indeed a dangerous situation, because it's harmful to those who file bankruptcy for legitimate reasons.
In contrast, those who file fraudulently are tying up the court system and hindering the resources other people need to get their debts discharged, and is therefore detrimental to the entire process.
Creditors also suffer because if someone files a bogus bankruptcy and conceals their assets, the creditors won't obtain any monies owed to them in lieu of unpaid debts, and will therefore find themselves "out in the cold", or "left holding the bag".
Because bankruptcy fraud is detrimental to everyone involved, the government has stepped up its efforts to crack down on it.
Anyone who willingly and knowingly commits bankruptcy fraud will be prosecuted to the fullest extent of the law.
So to those who would file bogus bankruptcies, think twice before attempting it because in the long run it's not worth it, and you won't get away with it.
A word to the wise should be sufficient.