In informal language, a “paper hanger” typically refers to a person who engages in fraudulent or deceptive financial practices, such as writing bad checks or engaging in check kiting schemes. The term originates from the practice of writing checks with insufficient funds, essentially hanging worthless paper in the financial system. Paper hangers may attempt to exploit loopholes or weaknesses in the banking system to temporarily inflate their account balances or delay the detection of their fraudulent activities. Engaging in such practices is illegal and can result in criminal charges, financial penalties, and damage to one’s reputation and creditworthiness.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 29th March, 2024.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
- Page URL:https://dlssolicitors.com/define/paper-hanger/
- Modern Language Association (MLA):Paper Hanger. dlssolicitors.com. DLS Solicitors. April 28, 2024 https://dlssolicitors.com/define/paper-hanger/.
- Chicago Manual of Style (CMS):Paper Hanger. dlssolicitors.com. DLS Solicitors. https://dlssolicitors.com/define/paper-hanger/ (accessed: April 28, 2024).
- American Psychological Association (APA):Paper Hanger. dlssolicitors.com. Retrieved April 28, 2024, from dlssolicitors.com website: https://dlssolicitors.com/define/paper-hanger/