What is Bankruptcy?
Bankruptcy is when person or a juridical entity declares that he can no longer pay his debts to creditors. For an individual or juridical entity to be declared bankrupt, a court order is often necessary which case is petitioned by the debtor. Not all insolvent individuals or entity are bankrupt. Bankruptcy and insolvency have different meanings.
Bankruptcy is not applied to companies in certain countries. For companies, insolvency proceedings are held instead of bankruptcy proceedings. In some countries, Insolvency proceedings such as liquidation and administration is the proceeding applicable to corporations rather than a bankruptcy proceeding.
Companies or individuals may be declared bankrupt in other countries.
Fraudulent bankruptcy is the only type of bankruptcy considered in other countries.
Bankruptcy originated from an italian word which if translated in English means broken bank. No bankruptcy status existed during the ancient times. If someone owed someone and is not able to pay, the debtor together with his or her whole family, and his or her servants are put into slavery. The debt slavery is lifted once the labor given by the debtor and his or her family and servants is enough to pay the debt owed and the losses incurred thereof. Five years is the maximum period a debtor and his family may be put in debt slavery. Unfortunately, slavery of servants need not follow the five year limit of being a debt slave.
Servants were made to serve for a lifetime under harsher conditions. Masters and slaves can not belong to the same nationality. And for this reason, slaves were always of another nationality than that of their masters. Debt slavery ended when the first law on bankruptcy was passed. However laws imposing death penalty for those who declared bankruptcy thrice was also passed.
Bankruptcy will change you because of the burden it carries.
Painful is the feeling of being bankrupt. Unfortunately, those who go bankrupt are not able to recover because of lack of knowledge on how to address their money issues.
There are those who have recovered from bankruptcy and are very much willing to lend a hand and their experience and knowledge to a person who is bankrupt in order for him or her to be able to recover from being bankrupt. Your story does not have to end in bankruptcy.
Being zero in resources and finances gets the best of every person.
In what instances is a person almost bankrupt? Ponder on these questions. Are you still able to pay your credit cards more than what the minimum due requires? Are you being haunted by bill collectors through phone? Does managing your current finances scare you to death. Do you use your credit cards often like even buying basic necessities?
Suggested Post: take a look at the site here