If you incur debt illegally, bankruptcy will not keep you out of jail.  If you borrow money from someone never intending to repay or make representations that you can repay that are false, you may get in trouble.   If you are an insurance agent and take money from a customer promising to obtain a policy of insurance, a stockbroker who takes money from a customer and never buys the stock or you borrow money on a promise of repayment from investments that you never had or made, you may be going to jail.   Bankruptcy will not help keep you out of jail and will not even slow down criminal prosecution.  Sometimes, it is possible to make a repayment plan in a bankruptcy to repay your creditors who then agree not to press charges against you.  This is based on the simple concept that a person in jail cannot repay creditors.   Unfortunately, by the time most persons come to a bankruptcy attorney with this type of problem, the creditors are so angry that they are not going to be satisfied with payment in most situations.   Perhaps a criminal judge will take into account that a payment plan has been set up in bankruptcy, but, this is not a sure thing. Sometimes, creditors can be convinced that the best deal for them is repayment plan in a bankruptcy case, but, creditors who have been defrauded are seldom willing to settle just for money.   The earlier creditors are contacted if a problem exists, the more likely they are to work with you.  Bankruptcy may also keep one creditor from grabbing assets that may be used to pay some money to all of the creditors.  If an asset happens to be producing additional income, protecting the income stream for the benefit of all creditors may make it necessary to file a bankruptcy to keep one creditor from grabbing the asset.

About Nathan Davis, Esquire

Born in Charleston, South Carolina, Nathan Davis has been practicing law for many years. Mr. Davis has a wide variety of experiences having practiced domestic relations, criminal law, social security law having also practiced collection law in the past. This knowledge is helpful when someone needs to restart their financial life. The practice is now primarily bankruptcy and debtor representation work, but, Mr. Davis continues to also practice real estate law, trusts and estates and a general litigation practice. I believe that the most important part of representation is trying to leave you better off when the case is finished than when you started. Although I will do as my client directs, I will always tell you if I think that you are making a mistake. Bankruptcy is about a "fresh start". If you do not make changes in what you are doing, you will be doing what you are doing now in the future. There is no shame in bankruptcy or other steps that you may take to start your life over. Too often, people worry more about things than about themselves, their family or their future.
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