Bankruptcy is a status where an individual is unable to repay the amount of money that he owe to a person bank or company. Usually, court order impose bankruptcy and often initiated by the debtor. It is not the equivalent of insolvency and this is not the only legal status that a person who is incapable to pay may encounter. In different parts of the globe like UK, bankruptcy is only bound for individuals. Insolvency proceedings like administration and liquidation are bound for companies. Bankruptcy is broadly applied to formal insolvency proceedings in America. The cases of fraudulent bankruptcy is also known as banqueroute in France. Cognate of failure or faillite is the term used for bankruptcy in a manner of conforming with the law.
The person that can be a great help to manage the business or personal owed money which you are unable to pay is the bankruptcy attorney. People and businesses are enabled by the bankruptcy laws to:
- Have a “fresh start” to have a sense of relief in almost all of the debts
- Pay the amount of money that he owed to each creditor as equally as possible
Another good thing is, all of the legal actions against a person are put on hold by filing the bankruptcy protection. Creditors will not be able to sue and deduct money from his monetary compensation. They will not be allowed to repossess home entertainment system or his car. These people are disabled to continue or start with a foreclosure activity against his house. There are a lot of different sorts of bankruptcy filings and all of them has its specific benefits or advantages. Being in the bankrupt status will have a very significant impact to the forthcoming purchasing capability and credit evaluation. Eventually, it will severely affect the status of someone’s business. The dilemma can be somehow relieved by having a bankruptcy attorney. This professional will make sure to provide the benefits through filing of bankruptcy protection. They can help a lot in outweighing the consequences.