Criminal Bankruptcy

Criminal bankruptcy refers to a situation where a person has accumulated significant debts due to criminal activity, such as fraud or embezzlement, and subsequently files for bankruptcy. While bankruptcy can provide relief from general debts, it does not discharge financial obligations arising from criminal fines, restitution, or specific types of penalties. In essence, although individuals may seek bankruptcy protection to manage their debts, criminal financial obligations typically remain enforceable, as the law aims to hold individuals accountable for crimes committed. This distinction is crucial for understanding the limitations of bankruptcy in the context of criminal behavior.