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ACT OF BANKRUPTCY

act  of  bankruptcy.An  event,  such  as  a  debtor’s  fraudulent  conveyance  of  property,  that

triggers  an  involuntary  bankruptcy  proceeding  against a  debtor.  • The  1978  Bankruptcy  Reform

Act abolished  this  requirement  as  a  condition  to  an  involuntary  bankruptcy  proceeding.  [Cases:

Bankruptcy    2281. C.J.S. Bankruptcy § 56.][Blacks Law 8th]