A bankrupt person, company, or business has inadequate assets to pay for their debts. The debtor seeks relief through a court continuing to function a payment schedule out or erase debts. The debtor must surrender control of all assets to a court-appointed trustee in some cases.
for management beneath the bankruptcy laws and regulations. There are two main kinds of bankruptcy:
- Involuntary bankruptcy-one or higher creditors of an debtor that is insolvent a petition obtaining the debtor declared bankrupt.
- Voluntary bankruptcy-the debtor files a petition claiming incapacity to fulfill obligations and willingness to be announced bankrupt. Continue reading