Bankruptcy Fraud And Its Effects On The Lower Income Brackets

Crimes are perceived to be committed by those in the lower income brackets that are in desperate needs financially. History, however, has been shown that those who are financially wealthy take advantage of opportunities that could help further destroy the lower and middle class as well by using bankruptcy fraud. The average white collar worker has more resources and power to deprive people, especially when it comes to the basic necessities in life. The basic need of having good credit is the dream everyone wants in order to be financially strong. Since the use of bankruptcy fraud has become notorious in today’s society, gaining proper knowledge with regards to the effects and penalties of the crime helps build awareness and deter†¦show more content†¦That being said, one of the bustouts that have been known to effect the society as a whole is the type that occurs in a retail enviroment. A bustout that occurs in a retail environment occurs when a potential store ow ner purchases a location or merchandise with intentions to file bankruptcy with anticipation that he or she is unable to afford the asset (Brown, Nettles, Tallinn and Tighe, 1999). Whether a person owes money to the merchant or not, eviction or the confiscation of items cant be done immediately since the judge always have final say as to what occurs under this situation. Unfortunately, while everything is going on, the merchant is loosing out because the money is being collected on the side with anticipation to move his or her location out, gain profit with the merchandise and file Chapter 7 bankruptcy (Brown, Nettles, Tallinn and Tigne, 1999). In addition to using the retail approach for obtaining a large profit all while anticipating to file bankruptcy, a white collar criminal will also use the credit card approach as well. In this case, the fraudster will start out his damage as a ordinary individual with good credit since the criminals main objective is to attack secretly. In this case, since the credit card holder will be obtaining credit in order to raise their credit limit, the person will apply for multiple credit cards and than max them out simultaneously