Official text prohibited actmental stateif conditionpenaltylegal term
A person who, having devised or intending to devise a scheme or artifice to defraud and for the purpose of executing or concealing such a scheme or artifice or attempting to do so—
(1) files a petition under title 11, including a fraudulent involuntary petition under section 303 of such title;
(2) files a document in a proceeding under title 11; or
(3) makes a false or fraudulent representation, claim, or promise concerning or in relation to a proceeding under title 11, at any time before or after the filing of the petition, or in relation to a proceeding falsely asserted to be pending under such title,
shall be , imprisoned not more than 5 years, or both.
History: (Added Pub. L. 103–394, title III, §312(a)(1)(B), Oct. 22, 1994, 108 Stat. 4140 (PDF, 6.5 MB); amended Pub. L. 109–8, title III, §332(c), Apr. 20, 2005, 119 Stat. 103; Pub. L. 111–327, §2(b), Dec. 22, 2010, 124 Stat. 3562.)
Simplified explanation
It is a federal crime to use the bankruptcy system as part of a scheme to cheat people. This includes filing a bankruptcy petition or other document, or making false claims or promises about a bankruptcy case, to carry out or hide a fraud scheme. It also covers lying about a bankruptcy case that does not actually exist.