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Identifying Bankruptcy Fraud Bankruptcy Fraud is a form of deception and theft, which unfortunately, is increasing in both the US and Europe. The bankruptcy system is designed to give an individual or a company a chance to reorganize their affairs, or if reorganization is not possible, to equitably distribute the non-exempt assets of the debtor among the creditors. This is often referred to as “a fresh start”. The amount of money a creditor will receive in a case will range from nothing in many cases to 100 percent in a few cases.
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