Finding Parallels Between Attorneys and Life

What is Bankruptcy?

A state where an individual, a partnership or a corporation cannot repay what he or they owe to creditors is called bankruptcy. For a debtor to declare a bankruptcy status, he or it should secure a court order declaring himself or itself bankrupt. Not all insolvent individuals or entity are bankrupt. The legal terms bankruptcy and insolvency can not be used interchangeably since they do not have the same meanings.

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.
However in other countries, bankruptcy is wore widely used.

There are countries that use bankruptcy only when it refers to fraudulent bankruptcy.

The word bankruptcy comes from an italian work which means broken bank. No bankruptcy status existed during the ancient times. If someone owed someone and is not able to pay, the debtor together with his or her whole family, and his or her servants are put into slavery. This is done until the labor served is enough to pay for the debt or losses incurred by the creditor. Five years is the maximum period a debtor and his family may be put in debt slavery. Having the servants undergo debt slavery may be done beyond the deadline of five years.

Under hard condition and for a lifetime are servants of debtors made to be debt slaves. A law was promulgated that slaves can not belong to the nationality of their masters. That is why foreigners are taken as slaves. It has been a great relief that bankruptcy laws were passed to avoid debt slavery. There was a law punishing three times declaration of bankruptcy with death.

Bankruptcy will change you because of the burden it carries.

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.

A person who has gone bankrupt should consider seeking counsel from successful bankruptcy survivors. There is a rainbow after the rain.

Being zero in resources and finances gets the best of every person.

What are the scenarios that would lead a person to file for bankruptcy? Ask yourself these questions. Do you pay the minimum payment due only when paying off your credit card? Are you getting calls from agents about your bills? Do you admit that managing of your finances is a huge nightmare? in buying necessities, are you using credit cards?