Bankruptcy fraud is hardly a new concept. As long as bankruptcy has existed, people have taken advantage of the program. Most people simply weren’t aware of it happening.
While there are many negative connotations connected to bankruptcy, for many people it’s a last, desperate attempt to climb out of a horrible financial situation and rebuild their lives. In some situations, it’s a chance at redemption.
The way California’s bankruptcy system works is that complete honesty and transparency are required. When you file for bankruptcy, you’re required to report all of your assets, your earnings, and your debt load. The problem many people run into is that the temptation to hide things proves too strong. If the court finds out, trouble ensues.
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