Published On: June 11, 2018

prison

Many people do not understand the consequences of filing multiple bankruptcies.  It is very important to know that every bankruptcy filed (even if the process is not completed) will stay on the credit for ten years.

Filing bankruptcy will stay on your public record forever.

Also, once the bankruptcy is filed you cannot remove it from the public record if you decide not to go forward.

Bankruptcy will stop a foreclosure and perhaps an eviction (for a short time), but can land you in prison if you abuse the process.

Filing bankruptcy to stop a foreclosure is not a good reason unless you intend on completing the bankruptcy process.  CHARLISE WILLIAMS found out the hard way that filing several bankruptcy petitions (serial filings) to stop a foreclosure or avoid an eviction can result in a conviction for bankruptcy fraud.  Ms. Williams is now spending the next four years in a federal prison for this bankruptcy fraud.

What is the story about this bad faith bankruptcy?

Ms. Williams owned a condominium, did not pay the secured debts so the condominium association moved to evict her.  According to Circuit Judge Joel M. Flaum, the filings followed the same pattern:

Her scheme was generally as follows. After filing for bankruptcy, Williams would fail to make all required payments as required by her Chapter 13 payment plan. As a result, the bankruptcy court would dismiss the case. After the dismissal, SCCA would often file eviction and collection suits. Williams would then file a new Chapter 13 bankruptcy petition in order to stay the action. Again, Williams would fail to make most of the required plan payments, and the cycle would continue.

prisonMs. Williams filed five bankruptcies over a decade – all to try to stop the foreclosure/eviction process on her condo.  She even involved a friend in this fraud by transferring title to the friend, after which the friend filed for bankruptcy.  This did not work out well for the friend because he was also sued for bankruptcy fraud.  Eventually the friend admitted he committed perjury as part of filing his own bankruptcy, and, in exchange for avoiding a felony conviction, the friend testified against Ms. Williams about the scam.

How Can I help You?MUSINGS BY DIANE:

Bankruptcy is not a game.

Never go down this path without understanding the implications on your life (present and future).  Never lie on any legal document.  Never lie on the stand.  Never lie to your attorney or your mother (both are there to try to help you).

By |Published On: June 11th, 2018|Last Updated: August 2nd, 2020|

Share this article

About the Author: Diane Drain

Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.

*Important Note from Diane: Everything on this web site is offered for educational purposes only and not intended to provide legal advice, nor create an attorney client relationship between you, me, or the author of any article. Information in this web site should not be used as a substitute for competent legal advice from an attorney familiar with your personal circumstances and licensed to practice law in your state. Make sure to check out their reviews.*

Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Google Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Yelp Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Avvo Reviews
Avvo - Rate your Lawyer. Get Free Legal Advice.
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Alignable Reviews
Law Office of D.L. Drain, P.A., Arizona Bankruptcy Lawyer - Better Business Bureau
5 / 5

“You folks are the BEST OF THE BEST in Arizona.” M.H.

You and Jay are the best attorneys I have ever had or needed and thank God for the Honorable Robert Gottsfield in recommending you folks – I would have never made it through the entire process without you and Jay and God Bless you both always and stay in touch as well. You folks are the BEST OF THE BEST in Arizona.

5 / 5

“My only regret is that I didn’t find Diane sooner.” K.H.

I can’t say enough good things about Diane. The way she handled my not typical circumstances was amazing. I was very nervous to start the bankruptcy process but Diane just has a very comforting way of explaining the whole process. My only regret is that I didn’t find Diane sooner. If you find yourself in a financial situation that you can’t correct on your own, please Call Diane Drain as soon as possible.

5 / 5

“Filing for bankruptcy can be a stressful life event” R.A.

Filing for bankruptcy can be a stressful life event, and selecting the right attorney can add to this stress. Diane and Jay were a pleasure to work with, and it is obvious that they are passionate about helping people get their life back on track. I would highly recommend them if you need a bankruptcy attorney.

Related Posts

  • Published On: July 5, 2022

    “The Kind of Attorney You Want on Your Side... ” A.V. Diane Drain is an amazing person. She is the kind of attorney you want on your side and comes highly recommended [...]

  • Published On: May 24, 2022

    “Top Notch Representation, Personalized Service! ” T.M. Diane Drain personally answers her incoming calls! Every individual has their own specific reasons for seeking bankruptcy protection. I enlisted Ms. Drain's assistance and from [...]

  • Published On: May 5, 2022

    “Diane Took the Time to Drop Great Wisdom and Insight for my Situation. ” D. C. I called to lean on Diane’s expertise around trust deed financing (even though it’s not her [...]

  • Published On: May 2, 2022

    “Quality and compassion. ” S. She is an expert in her field and compassionate. She listens and provides good advice. She will help you resolve difficult circumstances. S. [...]

My intention is to put you back in control of your life
Start with $0 down*. We provide affordable payment plans.

FREE CONSULTATION