Bankruptcy and Finding a Lawyer
A state where an individual, a partnership or a corporation cannot repay what he or they owe to creditors is called bankruptcy. A order of the court is a must for an individual or a juridical entity to declare that he or it can no longer pay its debts to its debtors. Insolvent individuals or juridical entities are not necessarily 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.
Companies or individuals may be declared bankrupt in other countries.
There are countries that use bankruptcy only when it refers to fraudulent bankruptcy.
Broken bank is the literal meaning of the italian phrase banca rotta where the word bankruptcy originated from. No bankruptcy status existed during the ancient times. Debt slavery was the answer for people who could not pay their debts, which slavery included not only the debtor but his or her family, and their servants as well. The debt slavery is lifted once the labor given by the debtor and his or her family and servants is enough to pay the debt owed and the losses incurred thereof. Five years is the maximum period a debtor and his family may be put in debt slavery. Unfortunately, slavery of servants need not follow the five year limit of being a debt slave.
Creditors make their debtor’s servant their lifetime slaves under conditions that are more cruel. Masters and slaves can not belong to the same nationality. And because of this, all slaves would belong to another nationality. Debt slavery ended when the first law on bankruptcy was passed. However laws imposing death penalty for those who declared bankruptcy thrice was also passed.
Life-changing and painful are the most accurate state that bankruptcy brings.
Bankruptcy hurts. People who go bankrupt rarely recover because they do not deal with their problem on how to manage their resources.
The best people to advise you on how to recover from bankruptcy are those people who were actually bankrupt and were able to recover. There is life after the life-changing bankruptcy.
Losing your finances to mismanaging of your resources is the most painful part of bankruptcy.
What are the scenarios that would lead a person to file for bankruptcy? Ponder on these questions. Are you still able to pay your credit cards more than what the minimum due requires? Are you getting calls from agents about your bills? Do you admit that managing of your finances is a huge nightmare? Do you use your credit cards often like even buying basic necessities?