"Bankruptcy fraud" is the disadvantaging 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:

• Maintaining incorrect records or destroying/embezzling them.
• Failure to account for revenues or use of funds for private purposes.
• Removing assets from the estate before bankruptcy.
• Preferential treatment of certain creditors.
• Provoking bankruptcy to avoid debts.
• Improper management where a company deliberately goes bankrupt.
• Transfer of shares to a 'straw man' to mislead the trustee in bankruptcy.
• Establishing a company with the intention of not making payments and then declaring it bankrupt.

Bankruptcy fraud harms creditors and is a serious form of financial abuse that is dealt with by the justice system.