What is bankruptcy?

[Bankruptcy]

Hi Everyone,

This is Davis from florida USA, I am here because i need to know about Bankruptcy & why we need to file it.

What are advantages of Bankruptcy.?

Hope I will get a satisfied reply from you guys.

Regards

Davis

[jmark1107]

bankruptcy comes under the liquidation category. It's called liquidation because the bankruptcy trustee may take and sell ("liquidate") some of your property to pay back some of your debt.

[talks44]

There are no advantages of bankruptcy, except that your all debts/loans are cleared.

[sakthi]

As soon as a debtor files for bankruptcy, there is an automatic stay and most creditors must stop their collection efforts. Thus, the debtor can begin rebuilding his credit; financially-speaking, the debtor can start over.

It is true that filing for bankruptcy ruins a debtor's credit from a number of years and may cause embarrassment. However, incurring more debt and facing the harassing phone calls, letters and potential lawsuits from creditors can have the same effect. Filing for bankruptcy will allow many debtors to get started sooner on rebuilding their credit in peace.

[Ocston12]

Bankruptcy is a process in which consumers and businesses can eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. For the most part, bankruptcies can be divided into two types -- liquidation and reorganization