The most common bankruptcy fraud is the concealment of personal assets. Almost 70 percent of bankruptcy fraud is of this type, according to the Cornell University Law School Legal Information Institute.
It is a fraud to keep any assets hidden from creditors, custodians or any court officer, explains the U.S. Government Publishing Office. It is also fraud to take a false oath while knowing the information provided is untrue. In many cases, individuals or companies do not show their assets and transfer them to a relative, friend or business partner, thus hiding the asset such that it becomes untraceable. Concealing assets can be very harmful to creditors as they can only access the assets listed by the debtor and lending becomes a risk, notes Cornell University.