Bankruptcy and Finding a Lawyer
A state where an individual, a partnership or a corporation cannot repay what he or they owe to creditors is called bankruptcy. For an individual or juridical entity to be declared bankrupt, a court order is often necessary which case is petitioned by the debtor. Insolvent individuals or juridical entities are not necessarily bankrupt. Insolvency and bankruptcy are not synonyms.
The term bankruptcy in other countries are only used for individuals. For companies, insolvency proceedings are held instead of bankruptcy proceedings. In some countries, Insolvency proceedings such as liquidation and administration is the proceeding applicable to corporations rather than a bankruptcy proceeding.
Companies or individuals may be declared bankrupt in other countries.
Fraudulent bankruptcy is the only type of bankruptcy considered in other countries.
Broken bank is the literal meaning of the italian phrase banca rotta where the word bankruptcy originated from. In ancient times, the state of bankruptcy did not exist. Debt slavery addressed a man who is not able to pay his debt wherein him and his family, and even servants are made to be slaves to pay the debt owed. This is done until the labor served is enough to pay for the debt or losses incurred by the creditor. This type of slavery was limited to a five year period. Unfortunately, slavery of servants need not follow the five year limit of being a debt slave.
Creditors make their debtor’s servant their lifetime slaves under conditions that are more cruel. There came a rule where slaves could not be of the same nationality as their masters. And because of this, all slaves would belong to another nationality. It has been a great relief that bankruptcy laws were passed to avoid debt slavery. However laws imposing death penalty for those who declared bankruptcy thrice was also passed.
Life-changing and painful are the most accurate state that bankruptcy brings.
Painful is the feeling of being bankrupt. People who go bankrupt rarely recover because they do not deal with their problem on how to manage their resources.
There are those who have recovered from bankruptcy and are very much willing to lend a hand and their experience and knowledge to a person who is bankrupt in order for him or her to be able to recover from being bankrupt. There is a rainbow after the rain.
What’s painful about bankruptcy is that you have to accept that you have lost control over our finances to the point that you no longer have resources.
In what instances is a person almost bankrupt? Ponder on these questions. When you pay your credit cards, do you always only pay the minimum amount due? Do you have collection agents of bills pestering you? Do you admit that managing of your finances is a huge nightmare? Do you use your credit cards often like even buying basic necessities?
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