Personal Bankruptcy Bankruptcy is one of most sensitive decision that one takes in order to payoff the huge amount of debt. When an organization decides to declare their business as bankrupt, then they have their team of lawyers who provide legal advise for the best possible deal that will be less harmful for the organization. However, in case of a personal bankruptcy, an individual has to be very careful before deciding to file bankruptcy. Personal bankruptcy can be due to several unexpected circumstances like sudden medical expenses with no insurance covered, loss of job, miss management with high expenditure etc. Whatever the reason but what one needs to decide while filing for bankruptcy is the amount he/she wants to surrender for the repayment of debt.
Types of Bankruptcy An individual or organization as a whole when became financially static with a lot amount of credit than income, then the last option he opt is bankruptcy. Bankruptcy is a legal system that declares one bankrupt or unable to do further business. This can be declared personally by filing a form in the bankruptcy court under bankruptcy laws. There are different bankruptcy laws in order to maximize the ability of the debtor to payback the creditor and to minimize the future of creditor and also the debtor as far credit record is concerned.
What is Bankruptcy? Bankruptcy is a legally declared financial status of an individual or any organization for being unable to meet his financial obligation fully or partially. This signifies the inabilities of the debtors to repay their creditors. The term bankruptcy is associated with Italian Renaissance period and is derived from the term “BancaRotta” or broken bench. Here bench refers to the bank or the business point of the merchant. This was the period when any merchant or debtor became unable to pay his debts then all his creditors used to destroy his bench.