Debtor Fraud

Debtor fraud occurs when an individual or business hides financial information or assets to avoid repaying debts. This can involve falsifying documents, transferring assets to friends or family, or failing to disclose income during bankruptcy proceedings. The intent is to deceive creditors and evade financial responsibilities. Such actions are illegal and can result in severe legal consequences, including penalties or imprisonment. Understanding debtor fraud is important for protecting oneself in financial dealings and ensuring fair practices in lending and borrowing.