Embezzlement occurs when a person fraudulently misappropriates property entrusted to them by another party or misappropriates property that has lawfully come into their possession.
People might engage in embezzlement due to personal financial difficulties, such as debts.
However, embezzling money might not solve debt issues, which can lead people who have engaged in embezzlement to pursue bankruptcy as a last resort.
Embezzlement can also create significant financial trouble for victims, leading them to pursue bankruptcy due to the consequences of embezzlement, making it difficult for victims to pay debts or other liabilities. As a result, embezzlement and bankruptcy frequently overlap.
Individuals who file for bankruptcy in cases involving embezzlement need experienced legal guidance to manage the complex issues that arise from the intersection of embezzlement allegations and bankruptcy filing to resolve debts. A bankruptcy and embezzlement lawyer from Loan Lawyers can provide knowledgeable advice and advocacy in bankruptcy cases involving embezzlement. Contact our bankruptcy law firm today for a free initial case evaluation to discuss your options.
Understanding Embezzlement in a Financial Context
Embezzlement involves a person taking money or assets entrusted to them by the owner or taking or using others’ money or assets that initially lawfully came into the person’s possession. Common examples of embezzlement include:
- An employee stealing property or money from their employer, such as taking cash from a cash register or the business’s safe
- A person with access to another party’s bank account or credit card uses that access to make personal purchases for themselves
- Misappropriating another party’s assets, such as stocks or other investments
Under Florida law, embezzlement can lead to prosecution under theft statutes. In certain circumstances, a person who engages in embezzlement might instead face prosecution under federal criminal law. A conviction can impose a criminal sentence that includes restitution as one of the penalties, requiring a defendant to reimburse their victim(s). Embezzlement can also lead to civil lawsuits filed by victims to seek compensation for their financial losses. As a result, people convicted of or found civilly liable for embezzlement may have substantial financial obligations to victims.
Embezzlement can also cause serious financial complications for victims. The loss of money or other assets can leave victims unable to pay debts or regular expenses, causing defaults on loans, repossession, or foreclosure.
The Link Between Embezzlement and Bankruptcy in Fort Lauderdale
Due to the financial effects that may flow from embezzlement, parties involved in an embezzlement case may pursue bankruptcy as a means of resolving their debt issues. For example, becoming a victim of embezzlement can lead to financial collapse as they may lose critical funds they need to pay debts and expenses. The losses resulting from embezzlement may cause victims to file for bankruptcy to manage debts they can no longer afford. Bankruptcy proceedings can provide embezzlement victims with the means to reorganize their debts and develop repayment plans to pay off debts over time while they recover from the financial consequences of embezzlement. Alternatively, victims might pursue liquidation bankruptcy to gain a fresh start after suffering devastating financial losses from embezzlement.
People who engage in embezzlement may face their own financial troubles and seek various forms of debt relief. Some individuals may misuse funds or assets entrusted to them to address debt issues. However, embezzling money might not solve one’s debt issues. Furthermore, people who embezzle funds may face financial liability to victims through restitution orders after criminal conviction or civil judgments from lawsuits. Allegations of embezzlement or financial liability for restitution or civil judgment can complicate a bankruptcy filing in Fort Lauderdale. For example, failing to disclose finances appropriately can lead to the dismissal of a bankruptcy case. Bankruptcy law can also limit the ability of a debtor to reorganize or discharge debts arising from criminal or civil liability.
Protecting Individuals Facing Accusations
Individuals facing embezzlement accusations who subsequently file for bankruptcy require experienced legal support to address potential financial liabilities arising from these allegations. Filing for bankruptcy to resolve debts, including liability for embezzlement under a restitution order or civil judgment, may face various restrictions on the kinds of relief one can obtain. Under most circumstances, a person with a restitution order from a criminal sentence cannot discharge these obligations through a bankruptcy petition.
Similarly, a bankruptcy court may refuse to grant a discharge for liabilities under a civil judgment resulting from willful injury or fraudulent conduct, such as a judgment from a lawsuit to recover compensation for losses caused by embezzlement. However, pursuing reorganization in bankruptcy may allow individuals with financial obligations from restitution or civil judgments due to embezzlement to repay those obligations over time.
Supporting Businesses Impacted by Embezzlement
Individuals and businesses can face significant financial difficulties after becoming victims of embezzlement. An embezzlement scheme can cost a victim money needed to pay debts and expenses, potentially causing them to miss monthly payments and default on debts. When embezzlement causes severe financial distress, victims may pursue bankruptcy to restructure and recover from the harm caused by losing funds or assets through misappropriation. Victims of embezzlement can use the automatic stay in bankruptcy to pause collection efforts after defaulting on payments. Bankruptcy can also allow embezzlement victims to work out a plan to catch up on payments or pay down debts resulting from financial harm.
Hiring experienced legal counsel can help embezzlement victims in Fort Lauderdale pursue legal avenues to secure relief from the economic challenges caused by the misappropriation of their money or assets.
The Role of an Attorney in These Cases
A knowledgeable Fort Lauderdale bankruptcy attorney can help you with the uniquely challenging legal issues that may arise in a bankruptcy case involving embezzlement. Legal representation for embezzlement victims can investigate alleged financial misconduct to obtain evidence that helps parties pursue bankruptcy relief, particularly when structuring repayment plans to pay down debts over time in certain bankruptcy cases. Bankruptcy attorneys can also help individuals facing embezzlement allegations navigate the challenges and limitations imposed by criminal or civil liability for embezzlement, including compliance with bankruptcy rules and court procedures.
Having experienced bankruptcy lawyers to represent you in a petition also means your counsel can negotiate on your behalf with creditors, bankruptcy trustee, or claimants. This helps to reduce the stress and anxiety caused by the legal process in a bankruptcy case.
Finally, a dedicated attorney can stand by your side to provide legal advice and personal support as you work to protect your interests while facing allegations of or liability for embezzlement or to recover from the financial harm caused by the embezzlement of your money or assets.
Why Choose Loan Lawyers in Fort Lauderdale
If you’re involved in a bankruptcy case related to embezzlement, you need highly experienced legal counsel to walk you through the complex issues in your case. Your choice of representation can give you the best chance of a successful outcome in your bankruptcy case. Turn to Loan Lawyers to guide you through your legal options in a bankruptcy case involving embezzlement because:
- Our firm has a proven track record of resolving over $100 million in debt and mortgage principal for clients and saving more than 4,000 properties from foreclosure. We put in the time necessary to develop legal strategies tailored to the circumstances of your case and your specific needs, concerns, and objectives.
- Our attorneys have represented over 10,000 clients across Florida and handled more than 200 consumer debt trials.
- Our legal team has more than 100 years of combined legal experience in all kinds of complex debt and bankruptcy cases. We have in-depth insight into Florida bankruptcy laws and procedures to guide you through the unique challenges of a bankruptcy case involving embezzlement.
When you choose us to help you with your bankruptcy case, you can expect our attorneys and staff to treat you with the respect, kindness, and dignity you deserve. With our firm, you will never face hidden fees or fine print about our services. Our team will provide the representation and service we agree upon.
Steps to Take if You Suspect or Are Facing Embezzlement Issues
When you suspect that you may have become the victim of embezzlement or when you face embezzlement allegations and you consider filing for bankruptcy to resolve your debt problems, you can take specific steps to help protect your interests and put you in the best position to pursue a bankruptcy filing. Here are the key steps to take in Fort Lauderdale bankruptcy cases involving embezzlement:
- Gather all available financial documents for your bankruptcy petition.
- Avoid retaliating against a party who has embezzled from you, or avoid making admissions of guilt or liability when accused of embezzlement.
- Consult an experienced bankruptcy attorney before making financial decisions to understand how bankruptcy can help you recover from embezzlement or protect your interests when facing allegations or liability.
Contact Our Fort Lauderdale Bankruptcy Attorneys for Help
Contact Loan Lawyers today for a free, confidential consultation with a knowledgeable bankruptcy lawyer in Fort Lauderdale to learn more about how embezzlement allegations can affect your rights and interests when you decide to file for bankruptcy. Having experienced Fort Lauderdale legal guidance can help you pursue a favorable resolution to your financial troubles and allegations of embezzlement.
