EVERYONE has heard of people being declared bankrupt but it’s not as simple as simply having no money.
Here’s all you need to know about the complex way people get their debts written off.
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What is bankruptcy?
Bankruptcy is a legal status whereby debts cannot be repaid.
In the UK being bankrupt is limited to applying to individuals but in the US and some other countries it can be applied to companies as well.
The word itself is derived from the Italian phrase banca rotta meaning “broken bank”.
In the modern world it normally involves a restructuring of debts in an attempt to rehabilitate those who owe the money and sometimes continue with their business.
In most j…
Read the full article at: https://www.thesun.co.uk/money/5044383/what-is-bankruptcy-is-it-the-same-as-insolvency-and-what-does-it-mean-if-someone-declares-themselves-bankrupt/