Law and Debt

What is Bankruptcy?
Bankruptcy in the U.S.A is the way of dealing with debts a person cannot pay. It carries with it a number of restrictions and obligations. It is a legal process, giving immediate relief to people with financial problems by stopping further action against them by their creditors.

It is strictly controlled by law and will result in a person having all their debts wiped if they cannot see their way out of financial problems. The whole purpose is to give the person with the problems a fresh start and takes into account all the assets they own, which will be taken and sold to pay off creditors.

What Does Bankruptcy Do?
Bankruptcy is a process, laid down by law, which deals with debts a person cannot pay. It is a term used for the formal procedure for individuals who are declared by the court as insolvent (i.e. they do not have sufficient funds to pay their debts).

Bankruptcy only applies to people, either as individuals not in business, or individuals in busin...

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