Debt Restructuring Fraud

An illegal technique where an individual or corporation hides or transfers assets before filing for bankruptcy. Debt restructuring allows the fraudster to reduce or even erase the debts and then reclaim the assets. Debt restructuring fraud is a clear abuse of the intent behind bankruptcy laws.

The guiding principle of bankruptcy is that the creditors and debtors can find a compromise that favors neither party, but satisfies both. By knowingly concealing or misstating assets, the debtor is abusing the process to escape financial liabilities while holding onto the wealth that those liabilities - and thus the creditors - helped create.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Economic Affairs — ▪ 2006 Introduction In 2005 rising U.S. deficits, tight monetary policies, and higher oil prices triggered by hurricane damage in the Gulf of Mexico were moderating influences on the world economy and on U.S. stock markets, but some other… …   Universalium

  • Bankruptcy — Notice of closure attached to the door of a computer store the day after its parent company declared bankruptcy (strictly, put into administration see text) in the United Kingdom. Bankruptcy is a legal status of an insolvent person or an… …   Wikipedia

  • Russia — /rush euh/, n. 1. Also called Russian Empire. Russian, Rossiya. a former empire in E Europe and N and W Asia: overthrown by the Russian Revolution 1917. Cap.: St. Petersburg (1703 1917). 2. See Union of Soviet Socialist Republics. 3. See Russian… …   Universalium

  • Insolvency law of Switzerland — The insolvency law of Switzerland is the law governing insolvency, foreclosure, bankruptcy and debt restructuring proceedings in Switzerland. It is principally codified in the Federal Statute on Debt Enforcement and Bankruptcy ( de. Bundesgesetz… …   Wikipedia

  • Milbank, Tweed, Hadley & McCloy — LLP Headquarters New York City No. of offices 11 …   Wikipedia

  • Chrysler Chapter 11 reorganization — See also: History of Chrysler, Automotive industry crisis of 2008 2009, Chrysler, and Cerberus Capital Management Chrysler LLC and twenty four of its affiliated subsidiaries filed a consolidated petition for bankruptcy on April 30, 2009,… …   Wikipedia

  • Predatory lending — describes unfair, deceptive, or fraudulent practices of some lenders during the loan origination process. While there are no legal definitions in the United States for predatory lending, an audit report on predatory lending from the office of… …   Wikipedia

  • Nigeria — Nigerian, adj., n. /nuy jear ee euh/, n. a republic in W Africa: member of the Commonwealth of Nations; formerly a British colony and protectorate. 107,129,469; 356,669 sq. mi. (923,773 sq. km). Cap.: Abuja. Official name, Federal Republic of… …   Universalium

  • Cerberus Capital Management — Type Limited Partnership Industry Private Equity Founded 1992 Headquarters …   Wikipedia

  • Thailand — /tuy land , leuhnd/, n. 1. Formerly, Siam. a kingdom in SE Asia: official name of Siam 1939 45 and since 1949. 59,450,818; 198,242 sq. mi. (513,445 sq. km). Cap.: Bangkok. 2. Gulf of. Also called Gulf of Siam. an arm of the South China Sea, S of… …   Universalium

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.