The process of petitioning a court to discharge one’s debts. There are two types of personal bankruptcy: Chapter 7 (liquidation of assets) and Chapter 13 (debt repayment plan).
The process by which a debtor, through a trustee under court supervision, may clear their debts by paying creditors an approved portion of what is owed. A bankrupt is prohibited from certain activities, including being a member of parliament, a Councillor or a company director.
When an individual cannot pay their debts they are served a bankruptcy order by a court.
A state in which a firm (or an individual) is unable to meet its financial obligations and hence its assets are surrendered to a court for administration.
A proceeding in a federal court in which a debtor, who owes more than his or her assets, can discharge personal liability for his or her debts. This affects the borrower's personal liability for a mortgage debt but not the lien of the mortgage.
A legal proceeding in which an insolvent person (i.e., someone who cannot pay debts) may be relieved of financial obligations, but loses control over bank accounts and future financial options. Bankruptcy is a last resort for those with debt problems, and although some debts may be discharged, bankruptcy affects a person's credit rating and financial opportunities for many years. Student loans, including alternative student loans, cannot be disharged through bankruptcy.
A legal proceeding in federal court used by persons or businesses to seek relief from creditors. Chapter 7 bankruptcies allow individuals and businesses to seek a total liquidation of their property in return for the majority of their debts being wiped out. Chapter 13 bankruptcies can only be filed by individuals. This type of bankruptcy allows the individuals to keep their personal belongings in return for making payments to creditors over a series of years, often repaying only a portion of the debt owed. Chapter 11 bankruptcies are for businesses and individuals with a high amount of debts and is similar to Chapter 13 bankruptcies in that payments are made to creditors overtime. Family farmers usually seek protection under Chapter 12 bankruptcies which are specific to farmers.
A player is bankrupt when he cannot raise the money necessary to buy a train for one of his companies. A player may not declare voluntary bankruptcy but he may engineer it.
Re-organization under "Chapter 11."
If someone cannot pay their debts when they are due to be paid, a court may issue a bankruptcy order against them. This order takes ownership of the debtor's property away from the debtor and allows much of the property to be sold. The money raised is divided between the creditors following strict rules.
A legal proceeding wherein a person or business unable to pay its debts may petition the court to obtain relief from payment of certain obligations. Once in bankruptcy, the parties' assets are sold to pay former creditors but then none of those creditors may sue for the remainder of the debt.
Inability to pay debts. A legally bankrupt company must transfer control of any remaining assets to a Trustee in bankruptcy.
an enterprise in which it is unable to pay creditors. The assets of the enterprise are administered by a government licensed person or company authorized to receive and manage all the property of the bankrupt company. Page 65
A legal declaration made by someone (either voluntary or not) that he or she is legally insolvent.
A court proceeding to relieve a person or business of the payment of all debt, due to a financial breakdown which has caused them to become financially insolvent. There are several types of bankruptcies
When a person or business is unable to pay their debts and seeks protection of the state against creditors. Bankruptcies remain on credit records for up to ten years and can prevent a person from being able to get a loan.
Is a state of insolvency where the liabilities of a company or individual exceed the assets and the company or individual does not have sufficient cash flow to make payment to creditors.
The official filing for protection against creditors due to the inability to pay all of one's debts as they come due. [Go to source
A federal law consisting of different chapters (i.e. chapter 7, chapter 11 or chapter 13) that allows individuals and businesses that are experiencing extreme financial duress and are unable to meet their financial obligations to eliminate or restructure their debts.
Another term for insolvency.
The term bankruptcy refers to procedures for the liquidation of the assets of individuals or companies unable to repay their debts. The assets are impartially distributed among creditors under the Bankruptcy Law, enacted in 1922. Borrowers in financial trouble usually file for bankruptcy on their own behalf, though creditors are also able to apply for defaulting borrowers to be declared bankrupt in order to protect debtors' assets. Under the laws governing bankruptcy, assets collected from individuals or companies are distributed among the lenders based on the priority of their claims. From 40,000 to 50,000 individuals a year filed for bankruptcy until 1995, when the number began to rise due to deteriorating economic conditions. A total of 139,000 individuals filed for bankruptcy protection in 2000, a 13% rise year on year. To cope with the surge in bankruptcies, special procedures were put in place in April 2001 to allow individuals to avoid being declared bankrupt if they repay part of their debt.
This is what a company files in their local court in order to protect themselves against creditors or show that they have no money to pay their bills.
A bankruptcy is a legal mechanism, the purpose of which is to modify or eliminate a person's obligation to repay certain kinds of debt in order to permit the person to get a "clean start" economically. Bankruptcy is a serious step for a borrower because it can severely limit access to credit for years to come.
A declaration by the Federal Court to place all of an individual's assets and liabilities with an official receiver to liquidate and distribute to creditors, according to prescribed legal guidelines. Bankruptcy can be declared if an individual's liabilities exceed his or her assets and/or accounts can not be paid. It should be noted that bankruptcy applies to an individual; the equivalent status for a corporation is receivership or liquidation.
Anyone can go bankrupt, including individual members of a partnership. There are different procedures for dealing with companies and for partnerships themselves. When a bankruptcy order has been made you must: provide the Official Receiver with a full list of your assets and details of what you owe and to whom; look after and then hand over your assets to the Official Receiver together with all your books, records, bank statements, insurance policies and other papers relating to your property and financial affairs tell your trustee about assets and increases in income you obtain during your bankruptcy. (Note: you are legally obliged to inform your trustee of any property which becomes yours during the bankruptcy. Such property includes lump sum cash payments that you may receive, for example redundancy payments or money left in a will); stop using your bank, building society, credit card and similar accounts straightaway not obtain credit of £250 or more from any person without first disclosing the fact that you are bankrupt. not make payments direct to your creditors. You may also have to go to court and explain why you are in debt. If you do not co-operate, you could be arrested.
A legal proceeding ordering the distribution of an insolvent person's property among creditors, thus relieving this individual of all liability to these creditors, even though this payment may be less than the full obligation to them.
Having been legally declared financially insolvent. There are two types of bankruptcy - liquidation, in which your debts are cleared (discharged) and reorganization, in which you provide the court with a plan for how you intend to repay your debts.
Federal law that allows individuals, married couples, and businesses to eliminate or restructure their debts when they have financial difficulties.
The financial inability to pay one's debts when due. A proceeding in which the debtor surrenders his assets to the bankruptcy court thereby relieving him from insurmountable debt.
The legal condition of an insolvent person who has sought and obtained relief under the bankruptcy laws. The remedy sought under these laws is the elimination or reorganization of the debtor's obligation to pay existing debts. Under P.L. 105-244, educational loans funded whole or in part by a governmental unit are non dischargeable, regardless of how long they have been in repayment, unless the debtor demonstrates undue hardship. Close
A legal proceeding which allows a debtor to discharge certain debts or obligations or allows the debtor time to reorganize his/her financial affairs so he/she can fully pay the debt. Bankruptcy does not discharge obligations secured by an assessment lien.
Legal proceeding to absolve or restructure outstanding debts
A condition in which a debtor cannot meet his debt obligations and his assets are liquidated.
An action taken by a debtor to legally protect its remaining assets by declaring that it cannot pay its bills. Typically, the debtor's liabilities exceed its assets.
A legal process that allows a debtor to discharge certain debts without paying the total amount due. A bankruptcy does not his or her obligations secured by a deed of trust.
A person's legal declaration that he or she is legally insolvent. There are two types of bankruptcy: Involuntary Bankruptcy, where creditors or lenders file a petition against the debtor (person in debt), and Voluntary Bankruptcy, where the debtor files a petition claiming inability to meet creditors' requirements. A court decides whether or not a debtor can declare bankruptcy.
When an individual or business is unable to pay back creditors. The individual or business files bankruptcy with the courts, surrenders all assets to the court and is no longer obligated to repay any unsecured debts.
the statutory procedure, usually triggered by insolvency, by which a person is relieved of most debts and undergoes a judicially supervised reorganization or liquidation for the benefit of that person's creditors.
The financial state of being unable to pay debts. Federal bankruptcy laws provide for either the reorganization or liquidation of corporate business and assets to pay some creditors.
A legal procedure that writes off all debts (with a few exceptions). You or one of your creditors can petition for bankruptcy. The debt is usually discharged after two to three years. However, if there is any equity in a bankrupt's home or other assets, they will usually be sold to repay debts.
A legally declared inability to repay debts. The United States Code differentiates between 4 different types of bankruptcy: Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
the filing by a Petition for Bankruptcy, or the filing against a debtor by his or her creditors of a Petition for Bankruptcy in an U.S. Bankruptcy Court.
Debts are discharged because that person is not able to repay debts. Assets may be liquidated to pay creditors, depending on the type of bankruptcy filed. Both types of bankruptcy may remove unsecured debts and stop foreclosures, repossessions, garnishments, utility shut-offs and debt collection activities. Both types provide exemptions that vary by state and allow people to keep certain assets. Generally considered the option of last resort, a bankruptcy stays on an individual's credit report for 10 years. Chapter 13 Bankruptcy - The court approves a repayment plan that allows the individual to pay off a default during a three-to-five year period, rather than surrender any property. Chapter 7 Bankruptcy- Liquidation of all assets that are not exempt. Exempt property may include automobiles, work-related tools, and basic household furnishings. Some of the property may be sold by a court-appointed official -a trustee-or turned over to creditors. Debts can be discharged through Chapter 7 only once every six years. Also known as straight bankruptcy.
A legal proceeding that relieves the responsibility of paying debts or provides protection while attempting to repay debts. There are two types of bankruptcies — liquidation, in which debts are wiped out, and reorganization, in which the court is provided with a plan for how the debts will be repaid. For both consumers and business, liquidation bankruptcy is called Chapter 7. For consumers, reorganization bankruptcy is called Chapter 13. Reorganization bankruptcy for consumers with an extraordinary amount of debt and for businesses is called Chapter 11. Reorganization bankruptcy for family farmers is called Chapter 12.
A proceeding in U.S. Bankruptcy Court that may legally release a person from repaying debts owed. Credit reports normally include bankruptcies for up to 10 years.
An order made under the Insolvency Act 1986 against an individual debtor (not a limited company) which signifies that he is unable to pay his debts. As a result of bankruptcy, bankrupts cannot trade or act as a company director.
The financial inability of a member to pay their debts. The member surrenders their assets to the bankruptcy court. Typically a Chapter 7 (all debts wiped out) or Chapter 13 (establishes a payment plan to payoff the debts). A bankruptcy remains on the members credit report for 7 years.
A debtor surrenders his assets to the Bankruptcy Court and is not required to repay unsecured debts under a federal law provision. Unsecured creditors may not pursue collection, and secured creditors are entitled only to the security the subject property holds for them. They may not pursue further collection.
Federal court proceedings which can result in a debtor being relieved of debts and liabilities.
Bankruptcy is one option to help someone with money problems to get a fresh financial start. When you declare bankruptcy, a Trustee deals directly with your creditors for you, and you have the opportunity to be relieved of most of the money you owe.
Code Title 11 of the United States Code governs bankruptcy proceedings. Bankruptcy is a matter of federal law and is, with the exception of exemptions, the same in every state. When federal bankruptcy law conflicts with state law, federal law controls.
A legal action in which a person is declared unable to meet financial obligations; under federal bankruptcy law this person's property can be used to satisfy creditors.
Bankruptcy is legal procedure for dealing with debts when you cannot pay.
A legally protected state that may be declared by a corporation that is unable to pay debts. There are two types of bankruptcy, one that deals with liquidation and another that deals with reorganization. Chapter 7 Bankruptcy is an option in which a bankrupt corporation is liquidated after the courts have determined that a reorganization is not worthwhile. A trustee is charged with liquidation of all assets and distribution of the proceeds to satisfy claims against the corporation in order of priority. Chapter 11 Bankruptcy is an option in which a trustee may be appointed to reorganize the bankrupt firm.
The procedure by which the debtor's assets are realised and, after payment of preferential and secured creditors, the balance (if any) is distributed, in proportion, to unsecured creditors
A legal proceeding declaring that an individual is unable to pay debts. Chapters 7 and 13 of the federal bankruptcy code govern personal bankruptcy.
Bankruptcy is the situation where a person has been legally declared to be financially insolvent.
A legal filing to protect an individual(s) who is no longer able to pay off debt to creditors. The bankrupt's property is distributed by the court to the creditors as full satisfaction of all debt. Certain exemptions can apply.
The federal court proceeding by which a debtor (individual or corporation) may obtain protection from creditors. The two general types of bankruptcy are voluntary and involuntary. A voluntary bankruptcy is initiated when the debtor voluntarily files a petition. In an involuntary bankruptcy, the creditor forces the debtor into bankruptcy. Debtors qualifying as ãfarmersä may not be involuntarily forced into bankruptcy. Bankruptcy proceedings involving farmers are declared under one of the several chapters of the federal bankruptcy code: Chapter 7 - liquidation; Chapters 11 and 12 - reorganizations; Chapter 13 - adjustment and workouts of debt.
When a person becomes incapable of making payments towards his debts, Court judges him bankrupt. Bankruptcy is considered a bad credit and hence loan providers try to prevent such borrowers from using secured loans.
Insolvency. A proceeding in federal bankruptcy court allowing the borrower to eliminate some or all of his/her debts in accordance with the bankruptcy laws. In most cases, the debtor’s liabilities exceed his/her assets.
The legal process undertaken by individuals in the situation of being unable to pay his or her debts. Although there are several types (chapters) of bankruptcy, consumers generally may explore Chapter 7 or Chapter 13 bankruptcy.
Legal action in which a person who cannot meet financial obligations is declared bankrupt by a court decree Back to the top
A legal procedure filed in Federal Bankruptcy Court that allows an entity or individual that is unable to pay its debt when due to reduce, reorganize or cancel those debts.
a legal process, regulated by the Bankruptcy and Insolvency Act, by which you may be discharged from most of your debts
The procedure under US federal law which allows a debtor to discharge or terminate (wipe out) dischargeable debts.
A condition where a debtor cannot pay debts now or as they become due, and uses the protection of the law to reorganize their financial affairs by liquidating certain property or formulating a repayment plan.
A legal action in which a person who is unable to meet the financial obligations is declared bankrupt by a decree of the court under the Federal Bankruptcy Law. Federal student loans, however, cannot normally be discharged through bankruptcy.
If you do not have enough money to cover all your debts you may be declared bankrupt in accordance with the Insolvency Act. A bankrupt person is not permitted to hold a bank account or apply for credit in excess of £250 without the court's permission.
Proceedings against a debtor, who has been declared legally insolvent, to distribute the debtor's property among the creditors.
(Chapters 7, 11, and 13) The legally declared condition of being unable to pay one's debts.
is the filing of a petition in bankruptcy court which causes, an Automatic Stay to be entered prohibiting the continuation of law suits or collection efforts by the IRS without the approval of the Bankruptcy Court. In addition, the IRS could be ordered to return property seized prior to the bankruptcy filing. Some taxes are not dischargeable in bankruptcy, for example: income taxes assessed within the last three years; "responsible person" 100% penalty taxes on failure to withhold payroll taxes.
A legal process that prevents creditors to take legal action on the debtor. There are two basically two ways of declaring bankruptcy – Chapter 7 and Chapter 13 bankruptcy.
The legal status of an individual debtor who has been declared bankrupt.
A debtor's estate is placed into the hands of a receiver who then distributes whatever funds are available for distribution
This is the worst-case scenario of not being able to settle your debts. When a court serves a bankruptcy order to an individual, the Official Receiver makes an inquiry into that person's affairs. The individual's assets are realised and distributed among creditors to the amount of the debts owed.
Protection from paying back debts against creditors.
Proceedings under federal bankruptcy by a court having proper jurisdiction. The bankrupt's property is distributed by the court to the creditors as full satisfaction of the debts, in accordance with certain priorities and exemptions. Voluntary bankruptcy is petitioned by the debtor; involuntary bankruptcy is initiated by the creditors.
A condition where a debtor cannot pay debts now or as they come due and uses the protection of the law to either liquidate property or reorganize his or her financial affairs.
The state of being unable to pay debts when due and having then filed with a court seeking the reorganization or Liquidation of a company.
The last resort for a borrower. Filed for protection when the borrower has difficulty meeting rent or mortgage payments, is completely extended beyond the credit limit, and collection agencies are uncooperative. Chapter 7 and 13 are two basic ways of filing for personal bankruptcy.
Two types apply to consumers: Chapter 7 refers to a court proceeding where one's unprotected assets are sold and disbursed to pay creditors. Chapter 13 allows the debtor an extended time to repay all or part of his/her debts. The debtor is allowed to keep his assets. Once a bankruptcy has been filed, foreclosures, garnishments, repossessions, utility cut-offs and debt collection activities are automatically stayed.
a condition which occurs when any individual has insufficient resources to meet his debts - see also insolvent.
The status of a person declared legally insolvent (his/her obligations exceed their assets). A plan is approved in which the bankrupt party's property is distributed among his/her creditors to satisfy the interests of the creditors.
A stipulation of Federal Law that allows an insolvent debtor to receive relief from creditors. A Trustee is assigned to sell off the debtors assets in order to repay the debts. Bankruptcy appears on your credit report for seven years after the initial declaration.
A proceeding in U.S. District Court wherein assets of an insolvent debtor are protected and distributed in an equitable manner.
Court procedure to relieve debts of an individual or business unable to pay creditors. Three chapters most commonly declared from the federal bankruptcy code include: Chapter 7, a bankruptcy filing that gives a trustee power to distribute a debtor’s assets to creditors; also referred to as “liquidation†Chapter 11, reorganization of a business that allows the debtor to maintain operational control while restructuring and repaying debt Chapter 13, a repayment plan in which a debtor files a budget with the court and agrees to make partial payment to creditors
The financial status of an individual or firm that has been legally judged either to have debts that exceed assets or to be unable to pay bills. The individual or firm can declare bankruptcy voluntarily or be pressed by creditors to do so. The debtor's remaining property and assets are then administered for the creditors or distributed among them.
A legal process started by a debtor which results in a court order which says the debtor no longer legally owes certain debts.
1. The state of being unable to pay one’s creditors’ claims as they come due; 2. Referred to as the United States Bankruptcy Code. It is found in Title 11 of the United States Code and is referred to as "11 U.S.C. Š ___". The Bankruptcy Code became effective October 1, 1979.
Bankruptcy is a legal proceeding in a federal court to relieve certain debts of a person who is unable to pay its debts.
A court action to restructure debt.
A court proceeding wherein assets of an insolvent debtor are protected and distributed for the benefit of his or her creditors.
A state of insolvency of an individual or organization. A legal proceeding that allows a debtor to discharge certain debts or obligations without paying the full amount. It gives the debtor time to recognize his / her financial affairs in order to repay his / her debts. A bankruptcy does not discharge obligations secured by a deed of trust.
A legal procedure that saved the debtor from facing any legal action from its creditors. Two types of bankruptcy are recognized – Chapter 7 and Chapter 13 bankruptcy and is considered very detrimental to the credit history of the borrower.
When a company owes more than it can pay, or when its debts exceed its assets, it's bankrupt. Occasionally, this situation can exist for some time before a bank decides enough is enough and calls in its loans.
When a person is declared bankrupt, he is found to be legally insolvent and his property distributed among his creditors or administered to satisfy the interests of his creditors. By law, a student loan cannot be discharged through bankruptcy.
Bankruptcy is a legal declaration of an inability to pay creditors. Both individuals and organizations can file bankruptcy.
A person is declared bankrupt when found to be legally insolvent and the person's property is distributed among creditors or otherwise administered to satisfy the interests of creditors. Generally, federal and private student loans cannot be discharged through bankruptcy.
declared in law unable to pay debts
A legal proceeding that allows debtors to eliminate or restructure debts when they have financial difficulties.
Insolvency; a process governed by federal law to help when people cannot or will not pay their debts.
A process under which a persons financial affairs are controlled by a trustee. Bankrupt person's assets are used to repay their debts. At the end of the process a persons debts are extinguished - even if their assets did not realise enough cash to repay their debts in full. The process takes a number of years. During the period of bankruptcy the person cannot enter into any agreements relating to borrowing money.
The last resort for a borrower. If the borrower has difficulty meeting rent or mortgage payments and is completely extended beyond the credit limit, and the collection agencies are uncooperative, the borrower may need to file for protection. There are two basic ways of filing for personal bankruptcy. A Chapter 7 bankruptcy declaration gets rid of all debts (except some taxes and maybe alimony payments); Chapter 13 allows a borrower with a steady income to pay off bills over a 36- to 60-month period. It's a serious step for a borrower because it severely limits access to credit for years to come.
Order A way of dealing with debts that cannot be paid. Bankruptcy proceedings free an individual from overwhelming debts. The official receiver is responsible for the administration of bankruptcies.
Process that one goes through to pay off outstanding debt and creditors. Bankruptcy will give you a new start when it comes to the financial aspect of your life. When you file for bankruptcy, the amount of your assets will be divided equally to all of the debts that you have.
Inability to pay debts. In bankruptcy of a publicly owned entity, the ownership of the firm's assets is transferred from the stockholders to the bondholders.
Proclamation by a court of an individual's (or organization's) state of insolvency, or inability to pay debts. Petition may be brought by an individual or creditors, with a goal of orderly and equitable settlement of obligations.
There are two types of bankrupty: Chapter 7 and Chapter 13. Declaring bankruptcy should be viewed as a last resort. This is a legal declaration of an inability to repay debts. It severely impacts your credit rating and can remain on your credit rating for 10yrs.
A legal proceeding in U.S. Federal Court, entered into by borrowers who are unable to pay their debts. In Chapter 13 bankruptcy, the borrower files a payment plan with the court and promises to make partial payments to creditors. In Chapter 7 bankruptcy, a trustee may sell the borrower's assets and use the proceeds to repay the creditors. Both types of bankruptcy stay on the borrower's credit history for up to 10 years.
A federal court proceeding in which an individual or corporation who is unable to meet debt obligations has their assets liquidated and is relieved of further liability.
A proceeding in which a court finds a debtor insolvent and relieves the debtor from payment of certain obligations. Bankruptcy remains on one's credit record for 7 to 10 years and can severely limit a person's ability to borrow.
Personal insolvency proceedings.
A legal status for those who are not able to repay their debts.
A proceeding in U.S. District Court wherein debtors who can not meet the claims of their creditors may be adjudged bankrupt by the court. There are many different types (and many chapters) of bankruptcy proceedings. Cancellation Clause- A clause that details the conditions under which each party may terminate the agreement. This should be explained in the agreement.
state of insolvency of an individual or an organization, in other words, an inability to pay debts.
A proceeding in a federal court in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee.
Personal insolvency (see also Sequestration).
A legal process available to individuals (and businesses) who are overextended financially and unable to pay their debts. Individuals can file for bankruptcy in order to legally eliminate some or all of their debts. Bankruptcy will not discharge all debts. Consult an attorney.
If you are unable to repay your debts it is possible for you to be declared bankrupt. In this case any assets you have can be used to raise money which is then distributed to your creditors.
An alternative available to homeowners who are going through a severe financial crisis and are no longer able to pay their debts.
A federal court proceeding in which debtors are relieved of liability for their debts after surrender of their assets to a court appointed trustee.
A legal state and term for a person or institution who cannot repay their debts
Proceedings under federal statutes to relieve a debtor who is unable or unwilling to pay its debts. After addressing certain priorities and exemptions, the bankrupt entity's property and other assets are distributed by the court to creditors as full satisfaction for the debt. [Go to source
A proceeding in a federal court that may relieve a debtor of the obligation to repay some or all of their creditors. A debtor's assets may be liquidated, and the obligations to the creditors can be altered or completely eliminated. Anyone who files bankruptcy has it denoted on their credit report for up to ten years.
There are several types of Bankruptcies (chapter 7,9,11,13, etc).
When a person and/or individuals in partnership are unable to pay their debts, a court may order that their financial affairs be managed by a trustee to call in all assets and pay debts from available funds. Bankruptcy is also referred to as insolvency.
A court proceeding authorizing reorganization or discharge of debts.
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankruptcy can be requested or initiated by the bankrupt individual or organization, or it can be requested by creditors in an effort to recoup a portion of what they are owed. However, in the overwhelming majority of cases, the bankruptcy is initiated by the "bankrupt" individual or organization.
This is when an individual who cannot pay their debts has been served a bankruptcy order by a court. The petition can be filed by the individual or by his creditors. For a first-time bankruptcy within a 15 year period for debts under £20,000 the procedure is known as a Summary Administration, and you may be discharged after two years. A first-time bankrupt with debts over £20,000 may be discharged after three years.
A court action under the United States Federal Bankruptcy Code by which a debtor's debts may be excused or rescheduled under specified circumstances.
An order made under the Insolvency Act (1986) against an individual , which indicates that he or she is unable to pay their debts. If you are made bankrupt there are serious implications on your ability to raise funds or be a company director.
Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
Bankruptcy is a serious situation and should never be considered lightly. There are generally two forms of Bankruptcy, Voluntary where you petition the Court for your own Bankruptcy or Compulsory, where a Creditor applies to the Court to make you Bankrupt. In order to be adjudged Bankrupt you must be deemed insolvent (unable to pay your bills, as and when they fall due). The limit for Bankruptcy is surprisingly low, a creditor may petition for your Bankruptcy if the sum that you owe is £750 or more. Mortgage after bankruptcy or need to remortgage to clear bankruptcy debt vist our bankruptcy remortgage page.
A legal proceeding that relieves you of the responsibility of paying your debts or provides you with protection while attempting to repay your debts.
A legal process to declare an inability to pay off all debts. Declaring bankruptcy will eliminate all credit card debt, but will also seriously damage your credit rating and will remain on your credit for at least 10 years. Federal student loans, Federal taxes and child support are exempt from Bankruptcy protection. There are two types of Bankruptcy: Chapter 7 and Chapter 13.
A state of insolvency where the financial affairs of the bankrupt are handled by a trustee appointed under the Bankruptcy and Insolvency Act. (Source: Bankruptcy and Insolvency Act)
Proceedings under federal bankruptcy statutes to relieve a debtor (bankrupt) from insurmountable debt. The bankrupt's assets are distributed by the court to the creditors as full satisfaction of the debts in accordance with certain priorities and exemptions. The debtor petitions for voluntary bankruptcy. Involuntary, is petitioned for by the creditors.
A proceeding in a federal court in which a debtor who has greater debts than assets can get debt relief by transferring those assets to a trustee or agreeing to reorganization of assets and liabilities.
A legal maneuver allowing consumers or businesses to discharge all debts and liabilities. See more on Bankruptcy.
This option is for borrowers looking to relieve themselves of some debts and liabilities. By filing in federal bankruptcy court, an individual or individuals can restructure or relieve themselves of debts and liabilities. The most common type of bankruptcy for an individual is the "Chapter 7 No Asset" bankruptcy, which relieves the borrower of most types of debts. A borrower cannot usually qualify for an "A" paper loan for a period of two years after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt.
A legal proceeding, which offers protection from creditor, if one is unable to pay debts.
A legal proceeding where a person or business is relieved of paying certain debts.
This is the legal process by which the assets of a debtor (who owes more than their assets) are transferred to a court-appointed administrator.
A legal agreement in which a consumer is declared fully or partially unable to repay debts. In return for full or partial release from those debts, the consumer sacrifices some property or agrees to a payment plan. There are two very different types of bankruptcy for consumers: Chapter 7 and Chapter 13.
Judicial action to stay the normal collection of debts against the petitioner, and cause those debts to be satisfied at the direction of the court. Bankruptcies are classified by "chapters," which refer to parts of a larger volume -- the U.S. Bankruptcy Act.
A provision of Federal Law whereby a debtor surrenders his assets to the Bankruptcy Court and is relieved of the future obligation to repay his unsecured debts. After bankruptcy, the debtor is discharged and his unsecured creditors may not pursue further collection efforts against him. Secured creditors, those holding deeds of trust or judgment liens, continue to be secured by the property but they may not take other action to collect from the debtor.
A court action under the Federal Bankruptcy Code by which a debtor's debts may be excused, usually by transferring assets to a trustee, or rescheduled.
Legally declared unable to pay your debts as they become due. Bankruptcy can severely impact your ability to borrow money. Talk to a credit counselor as soon as you realize you are having problems paying your bills on time to try to prevent bankruptcy.
When a person is legally declared unable to pay their debts. There are many types of bankruptcy that can be filed by consumers; the most common are Chapters 7 and 13.
Court procedures dealing with an individual's (or organization's) state of insolvency, or inability to pay debts.
the condition of being unable to pay debts, with liabilities greater than assets.
"By filing in federal bankruptcy court, an individual or individuals can restructure or relieve themselves of debts and liabilities. Bankruptcies are of various types, but the most common for an individual seem to be a ""Chapter 7 No Asset"" bankruptcy which relieves the borrower of most types of debts. A borrower cannot usually qualify for an ""A"" paper loan for a period of two years after the bankruptcy has been discharged and requires the re-establishment of an ability to repay debt."
The process of declaring an individual bankrupt. Bankruptcy remains on your credit rating for seven years and limits a person's ability to borrow.
A legal proceeding to give a person or business some relief from debts. See also Chapter 7 Bankruptcy, Chapter 11 Bankruptcy, Chapter 12 Bankruptcy, and Chapter 13 Bankruptcy.
Court proceedings to relieve the debts of an individual or business unable to pay its creditors.. Although it is still possible to obtain a loan after a bankruptcy, a bankruptcy will have a serious impact on your ability to get a loan and should be discussed with a lender as early in the lending process as possible.
A legal action taken when a credit holder cannot repay his or her debt. It modifies or eliminates the legal responsibility to repay some forms of debt. This is a serious action that can have serious consequences on a consumer's financial future.
A procedure under which most of a debtor's (q.v.) property is taken over and distributed amongst his or her creditors. (q.v.) See BANKRUPTCY.
The process whereby a person is declared by the court no longer to be able to meet his debts as they fall due. An officer of the court, the official assignee, then compiles a catalogue of the bankrupt's assets which will then be realised to meet all or part of his debts. A bankrupt is disentitled from doing certain things or from holding certain offices.
Proceedings under federal bankruptcy statutes to relieve a debtor (bankrupt) from insurmountable debt. The bankrupt's property is distributed by the court to the creditors as full satisfaction of the debts, in accordance with certain priorities and exemptions. Voluntary bankruptcy is petitioned by the debtor; involuntary by the creditors.
Bankruptcy applies only to individuals and not companies, and in essence is when a person cannot pay their debts more
A process for individuals to be legally declared as being unable to meet their debt obligations. The equivalent process for corporations is known as insolvency.
A legal proceeding that protects a debtor from legal action by some creditors. There are two basic ways of filing for personal bankruptcy. A Chapter 7 bankruptcy declaration gets rid of all debts (except some taxes and maybe alimony payments); Chapter 13 allows a borrower with a steady income to pay off bills over a 36- to 60-month period.
Court proceedings to relieve the debts of an individual or business unable to pay its creditors. See also Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.
A proceeding in federal court altering or eliminating an eligible individual's obligations to repay some or all of his or her creditors. A borrower may relieve debts by transferring his or her assets to a trustee. Different chapters or types of bankruptcy exist. If a person files bankruptcy, a record of the filing appears on the borrower's credit report for up to 10 years.
Unable to pay debts. Usually a proceeding in a federal court in which assets are liquidated in order to pay off creditors. Chapter 7 deals with asset liquidation. Chapter 11 deals with reorganization of a company.
Proceedings under federal statures to relieve a debtor who is unable or unwilling to pay its debts. After addressing certain priorities and exemptions, the bankrupt's property and other assets are distributed by the court to creditors as full satisfaction for the debt. See also: " Chapter 11".
A proceeding authorized by federal law which provides debtors with various kinds of relief from their debts. Click here for more information on bankruptcy or visit our helpful resources.
A form of debt relief, there are two kinds of bankruptcy
legal proceedings, which relieve a person from repaying their debts or gives a period of protection to a person attempting to repay their debts
Bankrptcy occurs when an individual is deemed insolvent by a County Court under the provisions of the Insolvency Act 1986. A bankruptcy petition can be initiated by the individual or his creditors. Once granted, it remains in force for three (sometimes two) years. Most Lender's have a clause in their mortgage conditions which provides a right to possession on bankruptcy, though this is seldom pursued unless the account goes into arrears. A mortgage Lender can require mortgage payments to be made direct by the bankrupt person rather than via an Official Receiver or Trustee in Bankruptcy.
A legal declaration that a person is unable to pay his or her debts. Back to Glossary Index
Declarations of bankruptcy have major impacts on your ability to receive loans or lines of credit of any kind. The basic gist is that by filing for bankruptcy protection in federal court, individuals can restructure or relieve themselves of debts and liabilities. The most common type of bankruptcy for an individual seems to be "Chapter 7 No Asset" which most types of the borrower's debts. A borrower cannot usually qualify for an loan for a period of two years after the bankruptcy has been discharged and must re-establish an ability to repay debt.
The legal process in which a person or firm declares the inability to pay debts. Upon a court declaration of bankruptcy, a person or firm surrenders assets to a court-appointed trustee, and is relieved from the payment of previous debts.
The condition of a legal entity that does not have the financial means to pay their incurred debts as they come due.
When a person is declared bankrupt, he is found to be legally insolvent and his property is distributed among his creditors or otherwise administered to satisfy the interests of his creditors. Federal student loans, however, cannot be discharged through bankruptcy.
When you file a petition of bankruptcy, you acknowledge that you are unable to pay your debts. If Chapter 7, or liquidation bankruptcy is filed, most of your assets are sold to repay the debts. With Chapter 11 Bankruptcy, also called reorganization bankruptcy, you work with the court and creditors to set up a plan to pay off some or all of the debt over a specific period of time.
A condition of financial insolvency in which a person's liabilities exceed assets and the person is unable to pay current debts.
A person is declared bankrupt when their debts outweigh their assets. While bankrupt a person is not allowed to have a mortgage or borrow money in his or her own right.
a state of being in so much debt that you are legally declared unable to pay in full the people and companies you owe. When you legally declare yourself bankrupt in some states, you must sell off all your possessions and pay off your debts as best you can.
The state of being unable to pay your debts such that you submit yourself to the protection of the state. A person or business may voluntarily assign himself into bankruptcy or may be petitioned into bankruptcy by his creditors. Once in bankruptcy, the person surrenders his assets to a trustee in bankruptcy who sells the assets for the benefit of the bankrupt's creditors, first secured creditors then unsecured creditors. Once a person is discharged from bankruptcy, none of his former creditors may pursue him for his former debts.
The process by which an individual or business is relieved of the payment of debts, after the submission of all assets to a trustee appointed by the court for the protection of creditors. Although it is still possible to obtain a loan after a bankruptcy, a bankruptcy will have a serious impact on your ability to get a loan and should be discussed with a lender as early in the lending process as possible.
A person who declares bankruptcy, is found to be legally insolvent and his property is distributed among his creditors or otherwise administered to satisfy the interests of his creditors. Federal student loans, however, cannot normally be discharged through bankruptcy.
A term that describes the legal process governed by the U.S. bankruptcy code for companies unable to meet financial obligations
A proceeding in a federal court in which an insovlent debtor's assets are liquidated and the debtor is relieved of further liability. Traditional institutions underserve borrowers whose credit history includes a bankruptcy or foreclosure.
A legal action in which a person who is unable to meet financial obligations is declared bankrupt by a decree of the court; under the Federal Bankruptcy Law this person’s property becomes liable to administration to satisfy creditors.
A legal proceeding during which a person is relieved from the payment of all his/her debts after surrender of some or all of his/her assets to a court appointed trustee.
When someone is not able to pay their debts in any way and assets are surrendered. They file for Chapter 7 or Chapter 13, where all their debts are wiped clean or payment plans are set up.
A legal procedure petitioned either by the debtor (voluntary) or by creditors (involuntary) when the debtor is unable to make his or her payments, in which the court distributes the debtor's property to creditors to fulfill repayment of debts.
formal insolvency proceedings relating to an individual
Legal relief from the payment of all debts after the surrender of all assets to a court-appointed trustee. Assets are distributed to creditors as full satisfaction of debts, with certain priorities and exemptions. A person, firm or corporation may declare bankruptcy under one of several chapters of the U. S. Bankruptcy Code: Chapter 7 covers liquidation of the debtor's assets; Chapter 11 covers reorganization of bankrupt businesses; Chapter 13 covers payment of debts by individuals through a bankruptcy plan.
A legal action, whether voluntary or involuntary, that generally is made based on an inability to pay debts when due.
When you are either unable or unwilling to pay your debts, legal proceedings can be taken which will make you bankrupt. A bankrupt is not allowed to borrow money.
U.S. Federal Court proceeding that legally releases a person from repaying outstanding debts.
Legally insolvent; not capable of paying bills
A legal proceeding in which the court establishes that a debtor is no longer required to repay debts they have acquired because they can no longer afford to repay them.
A court proceeding in which a debtor, who owes more than his assets, can relieve the debts by transferring his assets to a trustee. Beige Book - A survey of economic conditions, conducted in the Federal Reserve's 12 regional banks, in preparation for Federal Open Market Committee meetings. Frequency: twice per quarter. Source: Federal Reserve.
court proceeding by which a person, firm or corporation is relieved from payment of all debts after the surrender of all assets to a court appointed trustee
A legal process that provides immediate financial relief to individuals with financial problems by stopping legal actions by creditors. usiness Version (of a credit report) An abbreviated version of a consumer credit report. The business version of a credit report is what creditors see and does not contain account reviews or consumer disclosures.
A legal protection to a borrower against payment of debt.
A legal proceeding which offers protection from creditors to a debtor who is unable to pay debts.
A legal status, which can be initiated by a creditor or person concerned, whereby the bankrupt's property is vested in a trustee and, with the exception of certain personal and professional property, is available for distribution to creditors.
State of being unable to pay debts. Thus, the ownership of the firm's assets is transferred from the stockholders to the bondholders.
A person is made bankrupt by Order of the Court. From the date of the Bankruptcy Order the majority of the assets of the person who has been made bankrupt will vest in the Official Receiver or a Trustee in Bankruptcy. Certain restrictions are placed upon the bankrupt during the period that they are an undischarged bankrupt.
When a person is unable to meet his financial obligations he is declared bankrupt by a decree of the court. The Federal Bankruptcy Law states that this person's property is then used to satisfy the creditors. He can relieve the debts by transferring his assets to a trustee to clear his debts. Different chapters or types of bankruptcy exist amongst which Chapter 7 and Chapter 13 are the most popular ones.If a person files bankruptcy, a record of the filing appears on the borrower's credit report for up to 10 years.
A federal court process that relieves a person, firm, or corporation from the payment of debts.
When an individual is unable to pay its liabilities, debts and payments.
The financial inability to pay one's debts when due. The debtor seeks relief through court action that may work out or erase debts.
The process of being declared unable to pay your debts by a court. Your assets are then distributed among your creditors.
Is a legal avenue debtors use to be legally released from their debts. When a person can no longer pay his obligations, he may opt to file for personal or business bankruptcy. There are several chapters of bankruptcy but the most commonly used Chapter 7 (total liquidation of assets), Chapter 11 (Business reorganization), Chapter 12 (Farm debt) and Chapter 13 (Repayment Plan).
The financial inability to pay debts. The debtor seeks relief through legal proceedings.
A condition in which a business cannot meet its debt obligations and petitions a federal district court for either reorganization of its debts or liquidation of its assets. In the action the property of a debtor is taken over by a receiver or trustee in b
This is state of insolvency. When an individual or a business lacks the ability to pay it's debts than bankruptcy is declared. The two general types of bankruptcy are Chapter 7 & Chapter 11. Declaring Chapter 7 bankruptcy essentially means an individual or business has to liquidate all possessions in order to make payment to creditors. An individual who has declared personal bankruptcy will have this blemish recorded on their credit report for up to seven years.
A proceeding in the federal courts in which a debtor, who owes more that his or her assets can repay, can relieve those debts by transferring his or her assets to a trustee.
A proceeding in which a person who owes more than their assets is judicially declared to transfer their assets to a trustee thereby relieving their debt. A chapter thirteen bankruptcy involves a reorganization of a person's debt into one lump sum monthly payment to a trustee. The debtor will repay their debts according to their chapter 13 plan until the plan debts have been satisfied. A chapter seven bankruptcy involves the discharge of a person's debt.
A state of insolvency of an individual or organiza... more
A federal relief provided for a debtor (person) who owes more than his assets. The debts are 'discharged' or 'reorganized' (depending on which type of bankruptcy is filed) in a federal court. Usually, 1 to 2 years must elapse from the discharge of the bankruptcy before lenders will grant a mortgage. HOWEVER -everyone's situation is different, please ask us what we can do for you if you have filed bankruptcy.
The condition of insolvency, in which the assets of a debtor have been turned over to a receiver or trustee for administration.
A legal proceeding wherein one is granted relief from debts due to the inability to pay the debts.
Declared by the courts to be in a state of insolvency and having any assets and all financial matters turned over to a trustee for administration. In some cases, rather than totally dissolving a business, a reorganization or merger is allowed.
An inability to pay outstanding debt, in full or in part, or declaring insolvency may lead to bankruptcy. There are three parties to any bankruptcy proceeding: debits, creditors, and a trustee. Bankruptcy is an expensive process and may adversely affect future credit opportunities. Some more recognizable bankruptcy applications are
Refers to statutes and judicial proceedings involving a person or business that is unable to pay debts and seek the assistance of the court for financial help. Typically in a bankruptcy situation the debtor is relieved of his or her debt.
Declaring bankruptcy means stating that you are unable to meet financial obligations and pay your debts. There are several types of bankruptcies, but the most common individual on is "Chapter 7 No Asset" bankruptcy which relieves a person from most types of debts. Declaring bankruptcy can seriously affect your ability to get a loan for at least 2 years after bankruptcy is finalized.
People (and companies) are declared bankrupt when legally found to be unable to pay their debts and their property is distributed among creditors or otherwise administered to satisfy the interests of creditors. Generally, federal student loans cannot be discharged through bankruptcy.
This is a term used to refer to a business or person who cannot make their financial obligations, and ask for the Department of Courts for their help. Usually the courts will relieve the debt owing by the business or person.
A court proceeding in which a debtor can relieve him or herself of massive debt obligations, in part or in whole, depending on the type of bankruptcy filed.
Bankruptcy results when the borrower is completely unable to repay debts. The courts intervene to erase the debts by liquidating all the assets of debtor. Since bankruptcy is available on the website of the debtor for about 6 years, it becomes especially difficult for the borrower to get credit.
An individual or organization, acting voluntarily or by court order, liquidates its assets and distributes the proceeds to creditors. Types of bankruptcy are CHAPTER 7, CHAPTER 11, CHAPTER 12 and CHAPTER 13.
A special proceeding under federal, or in some instances state, laws by which the property of a debtor is protected by the court and may be divided among the debtor's creditors and the debtor.
formal recognition that a person cannot pay their debts as they fall due. Note that this only applies to real persons, companies and partnerships that become insolvent are "wound up".
An action filed in a federal bankruptcy court that allows a creditor to reorganize or discharge credit obligations. A bankruptcy will temporarily stop the foreclosure sale.
legal status imposed by adjudication of a court on an individual.
Declaration by a court of an individual's (or organization's) state of liquidation, or inability to pay debts.
A proceeding that legally releases a person from repaying a portion or all debts owed. Bankruptcy damages your credit for 7-10 years and should only be considered as a last resort if you cannot repay your debts. (See Chapter 7-13 Bankruptcy)
A legal process, regulated by the Act, by which you may be discharged from most of your debts. The purpose of the Act is to permit an honest, but unfortunate, debtor to obtain a discharge from his or her debts, subject to reasonable conditions. When you declare bankruptcy, your property is given to a trustee in bankruptcy who then sells it and distributes the money among your creditors. Your unsecured creditors will not be able to take legal steps to recover their debts from you (such as seizing property or garnisheeing wages).
A legal proceeding that enables a debtor to become absolved of all debts and get a "fresh start."
The formal condition of an insolvent person being declared bankrupt under law. The legal effect is to divert most of the debtor's assets and debts to the administration of a third person, sometimes called a "trustee in bankruptcy", from which outstanding debts are paid pro rata. Bankruptcy forces the debtor into a statutory period during which his or her commercial and financial affairs are administered under the strict supervision of the trustee. Bankruptcy usually involves the removal of several special legal rights such as the right to sit on a board of directors or, for some professions that form part of the justice system, to practice, such as lawyers or judges. Commercial organizations usually add other non-legal burdens upon bankrupts such as the refusal of credit. The duration of "bankruptcy" status varies from state to state but it does have the benefit of erasing most debts even if they were not satisfied by the sale of the debtor's assets.
The forced liquidation of a business's assets to satisfy creditors as administered by an impartial third party.
A legal procedure for dealing with debt problems of individuals and businesses; specifically, a case filed under one of the chapters of title 11 of the United States Code (the Bankruptcy Code).
A legal proceeding in which a person requests the federal bankruptcy court to determine that person's debts and assets that may be used to pay those debts. Some forms of bankruptcy discharge all consumer or "unsecured" debts if there are no assets to distribute to the creditors; however, child Support and spousal supoort obligations cannot be discharged in bankruptcy.
For tax purposes, a formal petition filed in a Bankruptcy Court under Chapter 7, 11, 12, or 13 of Title 11 of the U.S. Code.
When a debtor has his/her affairs (assets and liabilities) placed in the hands of a receiver who has the responsibility for their sale and repayment of debts to the extent that the proceeds of sale allow.
A legal proceeding designed to help people in financial difficulty to get a fresh start by relieving them from having to pay their current debts. Bankruptcies usually stay on a person's credit report for 7 years.
bankruptcy is a legal declaration of the inability to repay debts. bankruptcy should be viewed as a last resort. It will have a severe impact on a credit rating and will remain on a credit report for ten years. Furthermore, bankruptcy is not a solution in all cases. Federal student loans, Federal tax debt and child support are all exempt from bankruptcy protection. bankruptcy agreements vary but there are two types of agreements that most people choose: Chapter 7 and Chapter 13.
A proceeding in which an insolvent debtor can obtain relief from payment of certain obligations. Bankruptcies remain on a credit record for seven years and can severely limit a person's ability to borrow.
a legal declaration that a person is insolvent (unable to pay his or her bills as they fall due).
pursuant to US Bankruptcy law, an individual or corporation files for bankruptcy because of their inability to pay their debts; a trustee takes over the assets to pay the outstanding debts
The act of being bankrupt. While bankrupt you cannot take on any new debt. When discharged only some lenders will consider a loan application from the dischargee. Usually this will be non conforming lenders who will charge above normal interest rates for the added risk.
A tactic that individuals use to relieve themselves of debts and/or liabilities when they are no longer able to repay. The most common form of individual bankruptcy is a Chapter 7, when an individual frees himself from most of his/her debts. Borrowers who have undergone bankruptcy usually cannot qualify for "A" paper loans until after two years after declaration and a re-establishment of credit.
When a person or company can't pay back what it owes it is bankrupt. Bankruptcy is a legal procedure where a court appointed agent takes the property of the person or company that is bankrupt. The property is sold and the money is given to the creditors (the person or company who was owed the money).
A legal action in which a person who is unable to meet financial obligations is declared bankrupt by a decree of the court. Student loans are not eligible for automatic cancellation due to bankruptcy.
Court proceedings to relieve the debts of an individual or business unable to pay its creditors. Bankruptcy may be declared under one of several chapters of the federal bankruptcy code: Chapter 7: Bankruptcy filing which gives a trustee the power to distribute a debtor's assets to creditors. This is also called a liquidation. Chapter 11: A reorganization by a business allowing the debtor to maintain operating control of the business while restructuring debts and working out a repayment schedule acceptable to the creditors. This is also referred to as "debtor in possession". Chapter 13: A debt repayment plan where an individual debtor files a budget with the court and agrees to make partial payment to creditors over a three to five year period. Also called a "wage earner plan."
When a company is unable to pay its debts, it is bankrupt.
a legal proceeding that allows a debtor to eliminate certain debts and obligations without having to paying the entire amount or allows the person in debt time to reorganize so he can pay his debts off in full.
A condition of financial insolvency in which a person's liabilities exceed his assets, and he is unable to pay his debts.
A legal way to seek relief from creditors. Bankruptcy must be filed for in court and has serious long-term financial implications for a person's credit history. In bankruptcy proceedings, student loans less than five years old can be challenged by the lender.
When you declare bankruptcy, you're legally stating that you're unable to repay your debts. The debts are erased by the courts, but you won't be able to get new credit for 7-10 years. Bankruptcies are recorded on your credit report.
A legal procedure for dealing with the financial problems of individuals and companies. It refers to a case filed under the Bankruptcy Code or Title 11 of the United States Code.
The state of being or becoming bankrupt. A bankrupt person is one who, upon his own petition or that of his creditors, is declared insolvent by a court. You may be declared insolvent if you are unable to satisfy creditors or discharge liabilities, either because your liabilities exceed your assets, or because of an inability to pay debts as they mature Once a person is bankrupt their property is administered for and divided among their creditors.
A legal ruling where a person is said to be so far in debt that they cannot possibly cover their own existing loans nor can they earn enough to keep up with the payments. Whatever property that has a lien on it is then taken by the creditors (repossession or foreclosure) and usually sold to help recover the loss of what would have normally been paid by the person taking on the debt.
a legal proceeding which allows a debtor to discharge certain debts or obligations without paying the full amount or allows the debtor time to reorganize his financial affairs so he can fully repay his debts. (A bankruptcy does not discharge obligations secured by a deed of trust.)
The ability to relieve oneself from outstanding debts. The person filing for bankruptcy must file in federal bankruptcy court, and usually cannot receive a new loan for two years and must be able to show ability to repay the note. Most people who file for bankruptcy, file for Chapter 7, No Asset Bankruptcy.
Court proceedings to relieve the debts of an individual or business unable to pay its creditors. Bankruptcy may be declared under one of several chapters of the federal bankruptcy code: Chapter 7, which covers liquidation of individual or business assets; Chapter 11 which covers reorganization of bankrupt businesses; Chapter 1 2, which covers certain farm bankruptcies; and Chapter 1 3, which covers workouts of debts by individuals. Chapter 7: Bankruptcy filing which gives a trustee the power to distribute a debtor's assets to creditors. This is also called a liquidation
is what happens when one is not able to pay their debts and is freed, by law, from the need to pay the deft. When you have been declared bankrupt, this remains on your credit history for 10 years.
Unable to pay one's debts. Bankruptcy laws provide a fair and orderly way to divide up the bankrupt person's remaining property among those to whom money is owed.
Where an individual cannot, or will not, pay his debts, and those to whom he owes money (creditors) consider that he has assets which could be sold to repay them at least in part, then a creditor can ask the County Court to declare the debtor bankrupt. The court then appoints someone to sell the bankrupt's property on behalf of the creditors, Where the same thing happens to a company, as opposed to an individual, this is known as receivership.
When a debtor has his/her estate placed into the hands of a receiver who has the responsibility for its distribution.
The financial inability to pay one's debts when due. The debtor surrenders his assets to the bankruptcy court. An individual typically files for Chapter 7 (all debts wiped out) or Chapter 13 (establishes a payment plan to pay off debts). A bankruptcy stays on an individual's credit report for 7 years.
When an individual cannot meet debts, a state of bankruptcy is declared by the courts either at the request of creditors, or of the debtor directly.
Legal action filed in a formal petition in Bankruptcy Court which stops creditors' collection actions against you.
When a debtor who owes more than his or her assets relieves the debts by transferring his or her assets to a trustee and is relieved of the future obligation to repay unsecured debts.
Compulsory winding up of the total assets of a debtor due to insolvency. The debtor is (usually) an incorporated firm. The proceeds of the liquidation are distributed to the creditors.
An individual or organization unable to meet debt obligations petitions a federal district court for reorganization of debts or liquidation of assets or similar proceedings, or an involuntary petition is filed by creditors of the individual or organization.
Bankruptcy is a legal procedure designed to protect a person who is unable to pay his/her bills. Once a person files a bankruptcy petition, creditors are stopped from continuing to collect on debts until the Court has sorted them out.
Legally declared unable to pay your debts. Bankruptcy can severely impact your credit and your ability to borrow money.
A proceeding in a federal court to relieve certain debts of a person or a business unable to pay its debts.
A situation where an individual is incapable of settling his/her debts and has been served a bankruptcy order by a court.
A proceeding in a Federal court in which a debtor who owes more than his/her assets are worth can be relieved of his/her debts by transferring the assets to a trustee. Affects only the borrower's personal liability for the debt; does not affect the lien of the mortgage (see 'Personal Liability').
An inability to pay debts. Chapter 11 of the bankruptcy code deals with reorganization, which allows the debtor to remain in business and negotiate for a restructuring of debt.
When a persons assets are turned over to a trustee and used to pay off outstanding debts.
A legal proceeding that may release a person from debt. This includes Chapter 7 - total liquidation of assets, Chapter 11 - business reorganization, Chapter 12 - farm debt, Chapter 13 - repayment plan.
petitions and reorganizations are filed with the United States Bankruptcy and Civil Action Indiana Southern District, Indianapolis. Commercial bankruptcies are listed in bold/italics. The names of petitioners are listed in bold.
Properly defined as insolvency, that is, the inability of the debtor to pay his debts as they become due. However, it is technically a legal process under the Bankruptcy Reform Act of 1978 (See 11 U.S.C., Bankruptcy Code, effective October 1, 1979, and Bankruptcy Rules, effective August 1, 1983.)
A legal proceeding in U.S. Federal Court, entered into by borrowers who are unable to pay their debts that allows them to negotiate partial payment or the sale of the borrowers assets to partially pay back the debt. The information regarding a volentay or court ordered bankrupty stay on the borrower's credit history for up to 10 years.
Occurs when an individual is deemed insolvent by a County court under the provisions of the Insolvency Act 1986. This remains in force for three years. Most lenders have a clause in their mortgage conditions which gives them a right to possession on bankruptcy. This is seldom acted upon unless the account goes into arrears.
a process, sanctioned by the federal courts, which protects individuals and companies from actions of creditors except as authorized under the law.
Legal action in which a person who cannot meet financial obligations is declared bankrupt by a court decree. Federal Bankruptcy Law allows this person's property to be administered to satisfy creditors.
The legal financial state and individual is in, when unable to meet debts (for Companies it's known as being 'wound up'). A debtor may be declared bankrupt by the Federal Court at either the debtors or the creditors instigation, and the debtors estate will be placed in the hands of an official receiver who will distribute the estate in accordance to the provisions of the Bankruptcy Act.
Is an inability to pay debts which is recognised via court proceedings. A company or individual will be declared bankrupt once they've surrendered assets to an appointed third party, such as administrators.
Legal process, governed by federal statute, whereby the DEBTS of an insolvent person are liquidated after being satisfied to the greatest extent possible by the DEBTOR'S ASSETS. During bankruptcy, the debtor's assets are held and managed by a court appointed TRUSTEE.
Insolvency procedure for individuals.
When you hand over your assets to a federal court because you can't pay your debts, and are no longer held responsible for paying off your creditors. You can either enter bankruptcy voluntarily, or you can be forced to petition for bankruptcy after your creditors bring you to court to try and collect on their money. In general, the 3 main types of bankruptcies are: (1) Chapter 7, which wipes out most of your debt – taxes, alimony and student loans are often exceptions - and protects you from your creditors (2) Chapter 13, which lets you keep your assets if the court approves your plan to repay your creditors and (3) Chapter 11, typically for a company, which needs court approval on its plan to reorganize its finances and repay creditors. Bankruptcies stay on your credit report for 10 years and are automatically erased after this time.
A debtor that, upon voluntary petition or one invoked by the debtor's creditors is judged legally insolvent. The debtor's remaining property is then administered for the creditors or is distributed among them.
An inability of individuals or businesses to pay debts (liabilities exceed assets), legally declared by law.
When an individual or organization is declared financially insolvent by the Bankruptcy Court. There are four different types of Bankruptcy-Chapter 7, Chapter 11, Chapter 12 and Chapter 13.
A legal declaration of insolvency, which will stop foreclosures, repossessions, garnishments and debt-collection activities and which will be part of one’s credit record for the following ten years.
The result of a court decision to excuse some or all of the debts of an insolvent person or corporation . Bankrupt corporations usually go out of business. Bankrupt people usually have a hard time getting credit later, and may lose property, which a judge orders sold to repay as much debt as possible.
federal statutes and judicial proceedings involving persons or businesses that cannot pay their debts and thus seek the assistance of the court in getting a "fresh start." Under the protection of the bankruptcy court and the laws of the Bankruptcy Code, debtors may "discharge" their debts, perhaps by paying a portion of each debt.
The legal process in which a person declares his inability to pay his debts; any available assets are liquidated and the proceeds distributed among his creditors.
The financial status of a firm or an individual legally judged to have debts that exceed assets and thus unable to pay its bills. Formal bankruptcy may result in reorganization of the firm or it may require liquidation and distribution of proceeds to creditors. Stock transaction tables indicate that a company is in bankruptcy proceedings by appending a vi or q immediately before the name of the stock.
A court proceeding in which a debtor, who owes more than his assets, can relieve some or all the debts by transferring his assets to a trustee.
A proceeding in U.S. Bankruptcy Court wherein assets of a debtor (unable or unwilling to pay debts) are applied by an officer of the court in satisfaction of creditor claims.
(see also failure and insolvency) a non-technical term for a legal state of insolvency.
An order made under the Insolvency Act 1986 against an individual debtor (not a limited company) which signifies that he is unable to pay his debts and deprives him of his property which is distributed among his creditors. A bankrupt cannot trade or act as a company director.
Legal term used where a person is declared by courts as unable to pay their debts.
A procedure under the Bankruptcy Code, a debtor files a bankruptcy petition to voluntarily seek protection from his creditors. Also where merchants may file against the creditor, forcing him to pay debts owed to the.
An action filed in a federal bankruptcy court that allows a creditor to reorganize or discharge credit obligations due to insolvency. A property owner may halt foreclosure action by filing bankruptcy. Bankruptcies remain on a credit record for seven years and can severely limit a person's ability to borrow. Chapter 7 - "Debtor Wipeout" The court oversees the liquidation of the debtors' non-exempt assets, distributing the cash proceeds proportionally amongst their creditors. Chapter 11 - This is a business reorganization proceeding. Chapter 13 - "Debtor Workout" This is the almost-automatic choice of most trustors seeking to use a bankruptcy filing to delay the in- evitable trustee's sale as long as they can. The purpose of this proceeding is to give a "wage earner" time for rehabilitation . . . a temporary respite free from the collection efforts of creditors.
A state of insolvency of an individual or organization. The inability to pay debts.
You are declared bankrupt when you have insufficient funds to pay your creditors. You or one of your creditors can file for bankruptcy . Any assets will be sold to repay debts
the term refers to a legally declared inability to pay the creditors. It can refer to a person or organization.
People are made bankrupt when they cannot afford to meet the monetary demands of their creditors. Bankruptcy lets you make a fresh start, subject to restrictions, and shares out your assets fairly among your creditors. A court makes a bankruptcy order after a petition has been presented by the debtor or their creditors. If you are made bankrupt, creditors must make their claims to your trustee - you no longer control your assets. You can keep basic items needed to live and for your work, but might have to sell your home to pay your debts. In some future financial dealings, you will have to say you are bankrupt. You will be discharged as a bankrupt after a couple of years or when your debts are paid. Companies are never bankrupt, but they can be forced into, or declare, insolvency.
State of insolvency or an organization--in other words, an inability to pay debts. There are two kinds of legal bankruptcy under the U.S. law: involuntary, when one or more creditors petition to have a debtor judged insolvent by a court; and voluntary, when the debtor brings the petition. In both cases, the objective is an orderly and equitable settlement of obligation. See also Chapter 7, Chapter 11, Chapter 13.
A court proceeding in which a debtor is relieved of debt liability, in whole or in part, depending on the type of bankruptcy filed. There are two primary filings: a Chapter 7 bankruptcy declaration allows for the liquidation of assets and the discharge of most debts; a Chapter 13 bankruptcy allows a borrower with a steady income to pay off bills over a 36- to 60-month period. A person is declared bankrupt, when found to be legally insolvent and the person's property is distributed among c reditors or otherwise administered to satisfy the interests of creditors.
(Business Failure) This involves a discharge of the debtor's obligations through court order. The purpose of bankruptcy is to provide the debtor with a fresh start and to have an equitable distribution of the debtor's assets among the creditors. A major federal law concerning bankruptcy in the USA is the Bankruptcy Reform Act of 1978. Chapter 7 deals with corporate bankruptcy; Chapter 9 involves procedures for municipal bankruptcy; and Chapter 13 pertains to individual bankruptcy. Chapter 11 deals with reorganization (can be either voluntary or involuntary).
A legal declaration of inability to pay debts.
A proceeding in a federal court in which a debtor ( who owes more than his/her assets or cash flow) is relieved from the payment of debts. This can affect the borrower's personal liability or the mortgage debt but not the lien of a mortgage.
A process of legal action where an individual (or organization) declares insolvency to protect themselves from creditors. Any remaining equitable assets are distributed to creditors by courts in order to meet debt obligations.
A situation whereby an individual cannot repay debts, or whereby liabilities exceed the value of assets, and all of the individual’s assets and liabilities are placed in the hands of an official receiver to liquidate and distribute to creditors.
A legal process that people go through when they can not pay their debts. A bankrupt person gives control of most of the debts and assets to a bankruptcy trustee. The trustee decides which (if any) of the assets can be sold to pay off the debts.
1. Financial insolvency of either a personal or business/company. 2. (U.S. based) The filing of a petition for reorganization or liquidation under Title 11 or 7 of the United States Code.
a federal law Whereby a person's assets are turned over to a trustee and used to pay off outstanding debts; this usually occurs when someone owes more than they have the ability to repay.
Legal procedure by which a person or a business that is unable to meet financial obligations is relieved of debt.
When a person is declared bankrupt, they are found to be legally insolvent and their property is distributed among their creditors or otherwise administered to satisfy the interests of creditors. Federal student loans, however, cannot normally be discharged through bankruptcy.
A person is declared bankrupt when they are found to be legally insolvent and the person?s property is distributed among his/her creditors or otherwise administered to satisfy the interests of creditors.
a process governed by federal law where a person cannot pay bills when due and payable – chapter 7 and chapter 13 bankruptcy actions
A legal proceeding in which a person who is financially insolvent requests the federal bankruptcy court to determine his or her debts and use his or her assets to pay those debts. Property in bankruptcy usually is administered for the benefit of the bankrupt person's creditors. Some forms of bankruptcy seek to discharge all debt if there are no assets to distribute to the creditors. Child support obligations cannot be discharged by bankruptcy.
Legal process that takes place because of insolvency; unable to pay one's debts; insolvent.
The status of an individual or a legal entity that does not have sufficient resources to pay for its debts as they become due.
a court declaration that a person’s assets are with a trustee because they can’t pay their creditors.A company in the same situation is in receivership or liquidation
A federal court proceeding started by a person who cannot pay his or her debts and whose remaining property is administered for his or her creditors or distributed among them.
A legal proceeding in a federal court in which a debtor who owes more than the total of his or her assets can surrender those assets to the Bankruptcy Court, thereby being relieved of the future obligation to repay his or her unsecured debts; a Trustee in
the formal recognition that a person cannot pay their debts as they are due. Note this only applies to individuals. Companies and partnerships that become insolvent are wound up.
A legal proceeding that gives a person or business entity some relief from debts in the form of court protection from creditors.
The legal process that determines and oversees the distribution of an insolvent person's or company's assets to creditors. After distribution, the person or company is relieved of all liability to these creditors, even though some payments may have been less than the full obligation.
A legal state in which an individual or corporation enters at a time that they are no longer able to satisfy obligations of indebtedness to their creditor(s).
A legal procedure by which an insolvent debtor can be relieved of repayment of certain obligations. Bankruptcies remain on a credit rating for 7 to 10 years. This may become a problem in obtaining financing.
A legal proceeding which relieves people from their obligation to pay their debts in full.
A proceeding in U.S. Federal Court that may legally release a person from repaying debts owed. The law contains several chapters which relate to different methods of relief: Chapter 7 - Straight Bankruptcy (total liquidation of assets) Chapter 11 - Business Reorganizations Chapter 12 - Farm Debt Bankruptcy Chapter 13 - Wage Earner Repayment Plan
A proceeding in a federal court in which a debtor who is financially unable to pay debts when due seeks relief to work out a payment schedule or erase debts.
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. Creditors may file bankruptcy for a debtor in an effort to recoup a portion of what they are owed. In the majority of cases, bankruptcy is initiated by the debtor (the bankrupt individual or organization).