What is bankruptcy?

Answer by  patti (29325)

In bankruptcy, an individual or business can make it publicly known that he/it has no money to pay creditors. There are different kinds of bankruptcy. One kind forgives all indebtedness; another redistributes assets to cover as much debt as possible. Bankruptcy is filed in federal court and heard by a federal judge.

Answer by  SubhashChander (1773)

Bankruptcy means that the net worth of an individual or that of a firm or a company has gone in the negative and the said individual, firm or the company is unable to pay fully to its debtors.

Answer by  barkley (951)

Bankruptcy is when an individual or a business legally declare that cannot pay their debts. There are various types of bankruptcy under the legal code - some types for individuals, some types for businesses, some where debtors reorganize and try to pay some amount to their creditors, and other types geared toward specific groups.

Answer by  seeyana (8)

Bankruptcy is mean that company goes bankrupt because it is no longer can perform the business, liability is over the asset side and there is not enough capital. The performance of the company is bad and poor liquidities keep losing, no returning profits. The owners are not be able to pay debts.