A more thorough explanation:

New-debtor syndrome is a term used to describe the behavior of a debtor who files for bankruptcy in bad faith. This means that the debtor is not genuinely seeking relief from their debts, but rather is trying to take advantage of the bankruptcy laws.

One example of new-debtor syndrome is when a debtor forms a corporation right before filing for bankruptcy. This corporation is created solely for the purpose of filing for bankruptcy and is not a legitimate business. The debtor may use this corporation to hide assets or transfer them to someone else, which is not allowed in bankruptcy proceedings.

Another example of new-debtor syndrome is when a debtor incurs a large amount of debt shortly before filing for bankruptcy. This behavior shows that the debtor is not acting in good faith and is trying to take advantage of the bankruptcy laws to avoid paying their debts.

These examples illustrate how new-debtor syndrome can be used to manipulate the bankruptcy system. The court may dismiss a bankruptcy petition if it determines that the debtor is acting in bad faith, which can have serious consequences for the debtor.