Bankrupcy is a legally declared inability or severely reduced ability of an individual or an organization or company to pay their creditors.
Bankruptcy is effectively the statutory procedure under federal law by which a person, known as the “debtor” under goes a judicially-supervised liquidation or reorganization.
This process is meant to benefit of creditors where the debtor is usually relieved of much of his indebtedness through discharge. The creditors are given a portion of the debtor’s liquidated assets.
The word bankruptcy is often misspelled as bankruptsy, bankrupsy, or bankrupcy, among other versions, but all these words mean the same thing.
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