Bankruptcy and Finding a Lawyer
Bankruptcy is when person or a juridical entity declares that he can no longer pay his debts to creditors. 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. Bankrupt individuals and juridical entities are not only insolvent. Insolvency and bankruptcy are not synonyms.
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.
Fraudulent bankruptcy is the only type of bankruptcy considered in other countries.
Bankruptcy originated from an italian word which if translated in English means broken bank. There was no state of bankruptcy in 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. One and his or her family can not be debt slaves forever since this may only be done for a period of 5 years. 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. There came a rule where slaves could not be of the same nationality as their masters. And because of this, all slaves would belong to another nationality. Fortunately the law of bankruptcy was passed. However laws imposing death penalty for those who declared bankruptcy thrice was also passed.
Bankruptcy causes pain and change to people.
Painful is the feeling of being bankrupt. Unfortunately, those who go bankrupt are not able to recover because of lack of knowledge on how to address their money issues.
A person who has gone bankrupt should consider seeking counsel from successful bankruptcy survivors. There is life after the life-changing bankruptcy.
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? Ponder on these questions. Do you pay the minimum payment due only when paying off your credit card? Are you being haunted by bill collectors through phone? Do you admit that managing of your finances is a huge nightmare? Are you using credit cards to buy stuff that are essential for everyday use?