Bankruptcy fraud charge against debtor. A debtor who filed for bankruptcy is in big trouble. He has been charged with bankruptcy fraud. This is very serious. If convicted of the charges he could be facing prison. This is a perfect example of why it is important to be honest. Honest with your bankruptcy lawyer. Honest with the bankruptcy trustee. Honest with the bankruptcy court. Lying in life is never a good idea. When you lie in your bankruptcy filing, you are breaking federal law. In this instance, a Tennessee man is being charged. A grand jury in Nashville, Tennessee has indicted a 43 year old man. Michael Ross Smith was indicted on three counts of bankruptcy fraud. Smith stated he was a temporary employee at a Nashville business. He even testified he was no longer even employed at the temporary job. The indictment alleges this was far from the truth. The indictment states Smith was employed by the business as president of sales. Even more shocking, the indictment charges that Smith was making $150,000 a year. Smith was also indicted for fraudulently withholding documents related to his employment. This was in violation of an order issued by the bankruptcy judge. The FBI and the U.S. Trustee conducted the investigation. If Smith is convicted, he faces a maximum sentence of five years in prison on each count, and a fine of $250,000. The bankruptcy code is there to help people in financial trouble. Consult with an experienced bankruptcy attorney. Do not hide any information from your bankruptcy lawyer or the bankruptcy court. There are ways to protect your property. An experienced bankruptcy attorney can explain Chapter 13 and Chapter 7 bankruptcy to you. The bankruptcy lawyer will explain exemptions you are entitled to receive. The best way to legally protect you will be explained. Never lie when filing bankruptcy. It is not right. It is also not worth it. Bankruptcy crimes are serious. Federal prison is real too. The bankruptcy code offers protection when used properly.