Bankruptcy Fraud Should Be Distinguished From Strategic Bankruptcy
In bankrupcy laws, Is a legal status of a person or an organisation that cannot repay the debts it owes to its creditors. Creditors may file a bankruptcy petition against a business or corporate debtor (“involuntary bankruptcy”) in an effort to recoup a portion of what they are owed or initiate a restructuring. In the majority of cases, however, bankruptcy is initiated by the debtor (a “voluntary bankruptcy” that is filed by the insolvent individual or organisation). An involuntary bankruptcy petition may not be filed against an individual consumer debtor who is not engaged in business.