What is Bankruptcy?

[JOHN]

Explanation:

Bankruptcy is a legal proceeding involving a person or business that is unable to repay its outstanding debts. Once a a company is filed under Bankruptcy, the creditors are repaid a portion of their lending, using the company’s assets. But not all of the company’s assets are seized. The company can still start business afresh and can settle the debts over a period of time. However a company’s credit rating is spoiled on filing a Bankruptcy. Creditors in future, would not be willing to lend loans to a Bankrupt business. Thus Bankruptcy should be used as the last resort.
Bankruptcy is different from Insolvency, where the insolvent is left with nothing. The insolvent can never again regain back the business forever.

Statement Formation:

The businessman was completely distraught  that his business was filed under bankruptcy, and was determined to gain the fame and whatever he lost.

[Indhumathi v]

He started a perfumery shop in athens on borrowed capital, became bankruptcy and retired to the syracusan court, where he was well received by aristippus.

[wesley]

It is a legal process that allows consumers and business entities to eliminate some, or all, of their debts by order of a federal court.

Related legal terms and issues are:

1. Hearing

2. Judicial decision

3. Jurisdiction

4. Unsecured debt

[Vishnu varadhan]

In order to gain a  better understanding of  what they involve, the kinds of companies affected, the reasons for the difficulties, the consequences for the workers concerned and the support that they receive.

[Mounika]

Bankruptcy is a legal process under which a borrower protects or liquidates assets in order to pay debts

Usage;

Most of the bankruptices stemmed from excess debt and other problems exacerbated by the slow down

[Author]

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