BANKRUPTCY REFERS to the act of declaring one is incapable of paying debts. The laws relating to bankruptcy were designed to protect both individuals and corporations in the event that a financial disaster were to strike; more specifically, the laws were developed to prevent people and companies from losing all of their property. Occasionally, however, a debtor will fraudulently claim bankruptcy. The debtor may attempt to conceal her assets, she may lie about debt, or she may file multiple claims of bankruptcy in an attempt to defraud creditors.

Historically, the filing of a claim of bankruptcy imparted a sense of failure on the part of the debtor. However, as the procedure has become more established in society there has been a 500 percent increase in bankruptcy ...

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