What is bankruptcy?

Bankruptcy means when a person don't have as mush as funds so as to pay off his/her debts and declare it legally then such person is called as bankrupt. the benefit of declaring ownself as bankrupt is that once bankruptcy is declared the creditors can't demand for the dues.

Great topic,Thanks for discuss here.I think Bankruptcy is the process where a person legally declares himself or his business unable to pay outstanding debts. Depending upon the type of bankruptcy filed, one meets with a judge to determine a payment schedule, or have a legal bankruptcy discharge most if not all debts. Businesses also may declare bankruptcy, which either means the business will close, or that the business will continue to operate with reduced payments to debtors. Each country has its own bankruptcy designations, but this explanation will focus on the most common types of bankruptcy in the US.

When a person do not has [COLOR=#333333]mush as funds so as to pay off his/her debts and declare it legally then such person is called as bankrupt.A creditors can demand the [/COLOR]can't demand for the dues

hi,
The reply which you got was almost correct, its always safe to declare bankruptcy, if you can't pay your debts, just to avoid any further loss of money or life.

Insolvency is when an important person is so far in debit that they have no method to pay rear their debtors so they leave to a courtyard and inform a moderator and the moderator helps them to create adjustment.

Bankruptcy can be a complicated process. It is vital to know how the law regulates bankruptcy in your state, including what property exemptions you can claim. A lawyer knows the ins-and-outs of filing for bankruptcy, and can recommend what chapter of bankruptcy is right for you.

As soon as a debtor files for bankruptcy, there is an automatic stay and most creditors must stop their collection efforts. Thus, the debtor can begin rebuilding his credit; financially-speaking, the debtor can start over.

It is true that filing for bankruptcy ruins a debtor's credit from a number of years and may cause embarrassment. However, incurring more debt and facing the harassing phone calls, letters and potential lawsuits from creditors can have the same effect. Filing for bankruptcy will allow many debtors to get started sooner on rebuilding their credit in peace.
Not all debt will be discharged

When a person has a lot of debt but he does not have enough money to pay this this debt then he may consider as a bankruptcy. Or in the other word we can say Bankruptcy is a process in which consumers and businesses can eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. For the most part, bankruptcies can be divided into two types -- liquidation and reorganization.

Thanks for this i don't know about bankruptcy before, i increase my knowledge.....

legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the debtor (most common) or on behalf of creditors (less common). All of the debtor's assets are measured and evaluated, whereupon the assets are used to repay a portion of outstanding debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligations incurred prior to filing for bankruptcy.