What is Bankruptcy?

October 15, 2009 by  
Filed under Blog, What is Bankruptcy?

What is bankruptcy?

To put it in simple terms, bankruptcy is when a person legally declares that they will not be able to pay any outstanding debts that they have.   There are different types of bankruptcy, but in most cases you will haev to meet with a judge, or be discharged of all your debts. Businesses also have the capability of declaring bankruptcy.  There are two scenarios when a business declares BK, the first is the business will close, adn the second is that the business will operate with  smaller payments to its debtors.  One should always consult with a CPA when it come to filing for bankruptcy.

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