Legal Definitions - fraudulent debt

Definition: A debt created through fraudulent practices.

Example: John convinces his friend to lend him $10,000 for a business venture, promising to pay it back with interest. However, John never starts the business and uses the money for personal expenses. This creates a fraudulent debt.

This example illustrates how fraudulent debt is created when someone obtains money through deceitful means and fails to repay it. It is illegal and can result in legal consequences for the person who committed the fraud.