On this page, you'll find the legal definition and meaning ofBankruptcy, written in plain English, along with examples of how it is used. What is Bankruptcy? (n) Bankruptcy is the situation in which the liabilities of a person or business entity exceeds the assets and properties owned by ...
What is the definition of bankruptcy? The following glossary is intended to aid readers in understanding the terminology used on this Ontario-based website. The definitions provided here are general interpretations, not legal definitions. If you have specific questions, please reach out to us. If ...
Definition and Examples of Bankruptcy Bankruptcy is a process that gives you a legal means of starting over financially when you can't afford to pay your debts. Depending on which type you file, the bankruptcy court decides how creditors will be paid; it can also collect and sell your asse...
Bankruptcy is a legal tool to help you manage overwhelming debt. Common types include Chapter 7 and Chapter 13. Learn whether bankruptcy is right for you.
Bankruptcy is a legal tool to help you manage overwhelming debt. Common types include Chapter 7 and Chapter 13. Learn whether bankruptcy is right for you.
The goal of the Chapter 7 bankruptcy means test is to determine whether the filer cannot pay his or her debts. The calculation to determine that status is simple—the Chapter 7 filer's primary monthly consumer (but not business) expenses are deducted from their average 6-month income (estimat...
Bankruptcy proceedings can be initiated voluntarily by the debtor or involuntarily by the creditor. The process involves the filing of a petition in court, which is then reviewed by a bankruptcy trustee or judge. Depending on the type of bankruptcy being filed, the debtor may be required to sel...
Chapter 7 bankruptcyis a complete liquidation of a company’s assets to pay off debts and cancel remaining unsecured debts. At the end of the bankruptcy, the company goes out of business as it has conceded to the courts that it is unable to maintain its operations. The proceeds from the ...
Chapter 11 Bankruptcy vs. Chapter 7 Photo: FG Trade / Getty Images Definition Chapter 11 bankruptcyallows businesses to seek debt relief and protection from their creditors by reorganizing the business and its debts. It is the most complex, expensive type of bankruptcy in the U.S. Bankruptcy Co...
Voluntary bankruptcy is a type ofbankruptcywhere aninsolventdebtor brings the petition to a court to declare bankruptcy because they are unable to pay off their debts. Both individuals and businesses are able to use this approach. A simple definition of voluntary bankruptcy is simply when a debtor...