What is bankruptcy
The official definition of bankruptcy, according to Investopedia.com, is:
“A legal proceeding involving a person or business that is unable to repay their outstanding debts. The bankruptcy process begins with a petition filed by the debtor, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.”
Basically, you file bankruptcy when you can’t afford to pay your debts. You have to share your financial information with the bankruptcy court and, depending on the type of bankruptcy you file, you will no longer be responsible for paying off your debts, or your repayment obligations will be restructured to become affordable.
DOWNLOAD FOR FREE
10 THINGS YOU NEED TO KNOW WHEN FILING FOR BANKRUPTCY