In America bankruptcy malpractice is a federal crime. So if convicted in Sacramento it can result in up to 250,000 USD fine and/or 5 years in prison. Bankruptcy malpractices can be generalized in to three types- concealment of assets, multiple filings and petition mills.
Statistically speaking concealment of assets is the most common type of fraud. Here as name suggests the debtor while filing his bankruptcy chapter hides a part of his assets to keep them from being liquidated.
Sometimes a fraudulent debtor files for bankruptcy in more than one state while submitting incomplete asset lists in both places.
Petition mill is a very different kind of bankruptcy malpractice where instead of the real debtor a third party files for bankruptcy without the actual consent of the debtor. They are mostly related to tenancy issues. Changes in the bankruptcy law have actually increased these malpractices as rules for filing for bankruptcy under chapter 7 has been made tougher.
This has led to more and more people being forced to file bankruptcy under chapter 13. Here the debtor needs to pay a portion of the debt within 5 years.
Sometimes bankruptcy attorneys too are found to indulge in certain legal malpractices which are difficult to catch, so choose your attorney with care.