The estate of our economy has change, once again, the way many people look at bankruptcy. To better understand the ramifications of bankruptcy, we need to first define and describe what bankruptcy is about.
According to the dictionary, bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay its creditors. Originally, bankruptcy was a way to show how bankers, which used benches or "bank" to exchange money, count money or pay bills. The word was combined to indicate that the banker was broken and out of business. Hence, bankruptcy was used to express a broken banker.
There are two ways in which a person may find themselves in bankruptcy. First, creditors may file a bankruptcy petition against a debtor ("involuntary bankruptcy") in an effort to recoup a portion of what they are owed or initiate a restructuring. Second, bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the bankrupt individual or organization).
If you would like more information about bankruptcy or would like to go forward with bankruptcy proceeding, please contact our law firm for a free initial consultation.
The Baez Law Firm, P.C. is a general practice law firm that is ready to help you during difficult times. We handle criminal law, personal injury, family law, business law, consumer law, litigation, and appeals.