Bankruptcy

What Does Bankruptcy Mean?
A legal proceeding involving a person or business that is unable to repay outstanding debts. The bankruptcy process begins with a petition filed by the defaulter (most common) or on behalf of creditors (less common). All of the debtor's asset are measured and evaluated, whereupon the assets are used to repay a portion of terrific debt. Upon the successful completion of bankruptcy proceedings, the debtor is relieved of the debt obligation incurred past to filing for bankruptcy.