NH Legal Perspective: How fraud can impact the bankruptcy process

A fundamental policy behind the bankruptcy law is to provide a debtor with a “fresh start” by allowing him or her to discharge his or her debts. However, this policy is not all encompassing and does not override the competing policy that a dishonest debtor should not benefit from bad acts.

Accordingly, bankruptcy law provides that certain debts incurred through fraud or misrepresentation are not dischargeable as part of one’s bankruptcy case. Therefore, creditors should not assume that all is lost if a debtor files bankruptcy.

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