![]() | bankrupcyThe Website bankrupcy bankrupcy or Bankruptcy bankrupcy or Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankrupcy can be requested or initiated by the bankrupt individual or organisation, or it can be requested by creditors in an effort to recoup a portion of what they are owed. The primary purpose of the laws of bankrupcy are: (1) to give an honest debtor a "fresh start" in life by relieving the debtor of most debts, and (2) to repay creditors in an orderly manner to the extent that the debtor has property available for payment. bankrupcy allows the debtor to resolve his debts through the division of his assets among his creditors. Additionally the declaration of bankrupcy allows debtors to be discharged of most of the financial obligations, after their assets are distributed, even if their debts have not been paid in full. During the pendency of a bankrupcy proceeding, the "Debtor" is protected from extra-Bankruptcy action by creditors by a legally imposed "stay."
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