What is bankruptcy fraud?

"Bankruptcy fraud" (also called fraudulent bankruptcy) is the prejudice of creditors by withdrawing goods and/or money from the (almost) bankrupt estate, preventing creditors from seizing the assets. This type of fraud is punishable and occurs in various forms, such as:

• Keeping incorrect records or destroying/embezzling them.
• Failure to account for revenues or the use of funds for private purposes.
• Withdrawing assets from the estate before the bankruptcy.
• Preferential treatment of certain creditors.
• Provoking a bankruptcy to avoid debts.
• Mismanagement whereby a company deliberately goes bankrupt.
• Transfer of shares to a 'front man' to mislead the curator.
• Establishing a company with the aim of not making payments and subsequently letting it go bankrupt.

Bankruptcy fraud harms creditors and is a serious form of financial abuse that is tackled by justice.