Question

What is bankruptcy in your own words?

Answer 1

Answer:

When an organisation is unable to honour its financial obligations or make payment to its creditors, it files for bankruptcy. A petition is filed in the court for the same where all the outstanding debts of the company are measured and paid out if not in full from the company's assets.

Answer 2

Bankruptcy in my own words is the inability to payoff debt by the debtor.

What is Bankruptcy?

Bankruptcy occur when a borrower does no longer have the money to payoff or clear their debt.

In some cases where the borrower or debtor is unable to pay the debt the borrower assets can be used to payoff the amount the debtor is owing after evaluating the worth of the borrower assets.

Inconclusion bankruptcy in my own words is the inability to payoff debt by the debtor.

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