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When you go from being able to afford food and healthcare to being broke and miserable, and being cut off from any kind of help. Not mutually exclusive with homelessness but usually happens at the same time. A scrapped out person is poor and starving, living on scraps. Or when a person scraps out for good, they finally kick the bucket (if they have one) from lack of access to medical care or resources, or from poisoning due to poor quality of living conditions.
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