We hear about bankruptcy all the time and form an impression about people who file for bankruptcy.
For a layman, bankruptcy means anyone who is totally broke and has no money in bank or no income to pay their debts.
We believe that all the assets of such a person are auctioned off to pay the debtors and he ends up on the road...
literally.
If you are the one who is under debt and is thinking of filing for a bankruptcy while having this opinion then you must see a seasoned bankruptcy law firm which can tell you about bankruptcy.
Bankruptcy means a person has no resources or income to payback the debts and is willing to declare he is bankrupt.
Bankruptcy can be initiated by the individual or the company themselves of it can be initiated by the court or the creditors.
Bankruptcy helps debtors to discharge almost all of their debts by selling off all their assets which comes under non exempt category of the bankruptcy law by a bankruptcy trustee.
Filing for bankruptcy is not a very pleasant decision to make and in fact it is one of the most difficult decisions of your life as the negative effects of filing for bankruptcy stay with you for a long time.
Once you file for bankruptcy, your name is advertised in local media and you come on bankruptcy records of credit agencies.
Your chances of holding a prime position in a company or organization also get jeopardized seriously.