What is bankruptcy and what are the alternatives to bankruptcy?

Answer 1

Bankruptcy is a financial state in which debts are greater than assets and there is little or no likelihood that all debts can be repaid. As opposed to being penniless, or broke, bankruptcy suggests that there are one or more creditors owed money who cannot be paid. The related term for this is insolvency.

Personal bankruptcy laws allow for the legal clearing of such debts, and may protect certain personal assets from seizure. The result is that an individual can retain future earnings, but that any future loans or credit will be denied, at least for some period of time.

One question often arises throughout this process, and that is will people know you filed for bankruptcy?

The short answer is, it depends. A news report will not go out telling your friends and family that you have declared bankruptcy, but it will be reported on your credit history and is now accessible to whomever decides to request and check your credit history.

In a bankruptcy proceeding, any assets are collected and paid out to creditors in the order of their legal claims (these laws vary).

Answer 2

A legal proceeding involving a person or business that is unable to repay outstanding debts. All of the debtor's assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt

Answer 3

Bankruptcy, simply put, is a legal procedure which outlines statutes that must be followed if a person or business can not meet their financial obligations to their creditors. The link I have attached is a complete bankruptcy definition.

Answer 4

Consumer bankruptcy is bankruptcy that is filed by the individual who is in debt mostly due to consumer good. This is opposed to a business or corporation filing for bankruptcy. There are two types of bankruptcy which an individual/consumer can file under: Chapter 7 and Chapter 13.

Answer 5

Bankruptcy is a type of a last resort solution to out of control debt. There are a number of different types of bankruptcies which vary greatly. The law article below describes the different types of bankruptcy. The most common type is Chapter 7 bankruptcy which is a form of liquidation bankruptcy, in which non-exempt property is liquidated and sold to pay off your creditors

Answer 6

Bankruptcy is the status when an individual is already overwhelmed with debts. Filing for bankruptcy helps an individual to discharge certain types of debts thus allowing the person to have a fresh financial start. For individuals there are 2 types of personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is where an individual's assets are liquidated by a trustee to pay off debtors while in Chapter 13, the debtor draws up a payment plan to settle the debts he/she owes within a period of 3 to 5 years. In the event that the individual does not want to file for bankruptcy just yet there are options like out-of-court settlement, debt consolidation and debt counseling.

Legal Disclaimer:

The answer above should not be relied upon as legal advice. The information provided above is based on insufficient facts and only speaks to a general opinion based on those insufficient facts. No warranty is provided that the answer is correct. No attorney-client relationship has been formed with me until a signed written contract is complete. For an official opinion, it is advised you seek legal counsel.

Answer 7

a legal declaration that you are unable to repay your debts

Answer 8

Bankruptcy is a legally declared or recognized condition of the insolvency of a person or organization.