Bankruptcy fraud is being perpetrated by many people who make false documents about their financial status and submit to the court.
All expenses related to judicial matters for declaring bankruptcy are borne by ordinary people -- the taxpayers.
Therefore, it is every citizen's right to report bankruptcy fraud.
Here are some ways how to report the fraud.
You can contact the Internal Revenue Services regarding the fraud.
However, it will have to be in writing and you would need to give detailed information regarding the business or individual.
If you are really concerned, this is the best way to get the wheels started as an investigation by the IRS will ensue.
In order to report to the IRS, you can get in touch with the local office in your state to figure out the correct method of reporting the fraud.
When it comes to reporting an individual who has been using the welfare and assistance provided by the state before declaring bankruptcy, you should directly deal with the state's IRS office.
It is quite possible that you would be awarded a reward through the bounty program for reporting the fraud.
In which case make sure that you follow the proper procedure for reporting.
Remember, you need to furnish ample evidence to get the reward.
In case you want to report fraudulent activities of friends and family, contact your attorney, who will act as a mediator between you and the person at fault, so that proper legal action can be taken and you do not face any problems with the concerned person.
When reporting the fraud, you need to get access to the person or business' hidden assets.
Make sure you mention on the form where and how you managed to get the information.
Remember, all the information gathered should be through legal means as illegally obtained information cannot be used as evidence in court.