what is bankruptcy definition
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Log InSIGN UP!News Opinions Data Dashboard Advertise Hunter Conference 2018 What is 'Bankruptcy'. Bankruptcy is a 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, which is most common, or on behalf of creditors, which is less common. All of the debtor's assets are measured and evaluated, and the assets may be used to repay a portion of outstanding debt.
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Bankruptcy Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankruptcy is not the only legal status that an insolvent person may have, and the term bankruptcy is therefore not a synonym for insolvency.
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- 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. Chapter 7 bankruptcy comes under the liquidation category. It's called liquidation because the bankruptcy trustee may take and sell (liquidate) some of your property to pay back some of your debt. However, you may keep property that is protected (also called exempt) under state law.
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Bankruptcy - North Carolina Frequently Asked Questions Bankruptcy is a legal proceeding in which a person who can not pay his or her bills can get a fresh financial start. The right to file for bankruptcy is provided by federal law, and all bankruptcy cases are handled in federal court.
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The case for Indigenous self-determination Bankruptcy is a matter of federal law and is, with the exception of exemptions, the same in every state. When federal bankruptcy law conflicts with state law, federal law controls. Bankruptcy Code incorporating changes effective 10/17/05.
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What is 'Liquidation' What is 'Liquidation' Liquidation in finance and economics, is the process of bringing a business to an end and distributing its assets to claimants. It is an event that usually occurs when a company is insolvent, meaning it cannot pay its obligations when they come due.
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- Definition of bankrupt. 1  1a : a person who has done any of the acts that by law entitle creditors to have his or her estate administered for their benefitb : a person judicially declared subject to having his or her estate administered under the bankrupt laws for the benefit of creditorsc : a person who becomes insolvent.
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Act of bankruptcy The acts of bankruptcy enumerated in the late act of congress, of 19th Aug. 1841, s. 1, are the following: 1. Departure from the state, district, or territory of which a person, subject to the operation of the bankrupt laws, is an inhabitant, with intent to defraud his creditors.
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- Bankruptcies can generally be described as liquidation (Chapter 7) or reorganization (Chapter 13). Under a Chapter 7 bankruptcy, you ask the bankruptcy court to wipe out (discharge) the debts you owe.
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Bankruptcy Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor.ankruptcy is filed when a person or a company becomes insolvent and cannot pay their debts as they become due and if they have at least $1,000 in debt. In 2011, the Superintendent of bankruptcy reported that trustees in Canada filed 127,774 insolvent estates.
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What Does It Mean To File For Bankruptcy? What does it mean to file for bankruptcy? It means you have decided to deal with your money problems and take control of your life. Does that sound too much like a commercial? Try this… Bankruptcy is a legal term that is used to describe a process, as well as a status.
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discharge Related Terms. 1. Formal statement of relinquishment that releases an entity from debt, liability, or obligation. For example, an order of discharge frees a bankrupt from outstanding debts at the end of bankruptcy proceedings. 2. Release of a convict without pronouncement of a sentence.
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bankruptcy The goal of modern bankruptcy is to allow the debtor to have a fresh start, and the creditor to be repaid. Through bankruptcy, debtors liquidate their assets or restructure their finances to fund their debts.
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- The Purpose of Bankruptcy The purpose of bankruptcy is to give a fresh start to good, honest, hard-working, but unfortunate, people, just like you. But, don't take our word for it.
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What Happens When Chapter 13 Is Dismissed? Bankruptcy is a legal process by which debtors may restructure or obtain relief from overwhelming debts and get a fresh start on building a positive economic future. The bankruptcy court process has stringent rules and timelines to insure the debtor and creditors are treated fairly.
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Legal Terms Chapter 11 - Bankruptcy Basics. This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11. Background
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liquidation DEFINITION of 'Liquidation'. 1. When a business or firm is terminated or bankrupt, its assets are sold and the proceeds pay creditors. Any leftovers are distributed to shareholders. 2. Any transaction that offsets or closes out a long or short position.
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Bankruptcy Bankruptcy is not the only legal status that an insolvent person may have, and the term bankruptcy is therefore not a synonym for insolvency. In some countries, such as the United Kingdom, bankruptcy is limited to individuals, and other forms of insolvency proceedings (such as liquidation and administration) are applied to companies. In the United States, bankruptcy is applied more broadly to formal insolvency proceedings.
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Bankruptcy in the United States Bankruptcy in the United States. In the United States, bankruptcy is governed by federal law. The United States Constitution (Article 1, Section 8, Clause 4) authorizes Congress to enact uniform Laws on the subject of Bankruptcies throughout the United States..
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The Debt Discharge in Bankruptcy FAQ What is a discharge in bankruptcy? A bankruptcy discharge releases the debtor from personal liability for certain specified types of debts. In other words, the debtor is no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the debtor from taking any form of collection action on discharged debts, including legal action and communications with the debtor, such as telephone calls, letters, and personal contacts.
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Bankruptcy Law - Chapter 7, 11, 13 Know Your Rights! 1  Common Questions About Bankruptcy Bankruptcy is a legal proceeding that helps some people who cannot pay their bills get a fresh financial start by temporarily, or permanently, preventing creditors from collecting debts from you.
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Bankruptcy Bankruptcy. Bankruptcy helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan. Bankruptcy laws also protect financially troubled businesses. This section explains the bankruptcy process and laws.bout Bankruptcy. Filing bankruptcy can help a person by discarding debt or making a plan to repay debts. A bankruptcy case normally begins when the debtor files a petition with the bankruptcy court.
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Trustee in bankruptcy A trustee in bankruptcy is an entity, often an individual, in charge of administering a bankruptcy estate.
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Bankruptcy Definition: What Exactly Is It? Bankruptcy is a generalized term for a federal court procedure that helps consumers and businesses get rid of their debts and repay their creditors. If you can prove that you are entitled to it, the bankruptcy court will protect you during your bankruptcy proceeding.
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Definitions &Translations Liquidation. In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation.
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Insolvency Insolvency vs. Bankruptcy. Insolvency is not the same as bankruptcy. Insolvency is a state of economic distress, whereas bankruptcy is a court order that defines how an insolvent debtor will meet his or her obligations and/or have assets liquidated (sold) to pay the creditors.