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Bankruptcy and Finding a Lawyer

A state where an individual, a partnership or a corporation cannot repay what he or they owe to creditors is called bankruptcy. A order of the court is a must for an individual or a juridical entity to declare that he or it can no longer pay its debts to its debtors. Bankrupt individuals and juridical entities are not only insolvent. The legal terms bankruptcy and insolvency can not be used interchangeably since they do not have the same meanings.

There are countries where the term bankruptcy only refer to individuals and not companies. For companies, insolvency proceedings are held instead of bankruptcy proceedings. In some countries, Insolvency proceedings such as liquidation and administration is the proceeding applicable to corporations rather than a bankruptcy proceeding.
Companies or individuals may be declared bankrupt in other countries.

Fraudulent bankruptcy is the only type of bankruptcy considered in other countries.

Broken bank is the literal meaning of the italian phrase banca rotta where the word bankruptcy originated from. There was no state of bankruptcy in ancient times. Debt slavery was the answer for people who could not pay their debts, which slavery included not only the debtor but his or her family, and their servants as well. The creditor will drag the slavery of his debtor and the debtor’s family and servants until their physical labour compensates the debt or the losses incurred because of the non payment of the debt. This type of slavery was limited to a five year period. Servants on the other hand may be required to render longer period of slavery.

Under hard condition and for a lifetime are servants of debtors made to be debt slaves. There came a rule where slaves could not be of the same nationality as their masters. And because of this, all slaves would belong to another nationality. It has been a great relief that bankruptcy laws were passed to avoid debt slavery. There was a law punishing three times declaration of bankruptcy with death.

Life-changing and painful are the most accurate state that bankruptcy brings.

Painful is the feeling of being bankrupt. Unfortunately, those who go bankrupt are not able to recover because of lack of knowledge on how to address their money issues.

The best people to advise you on how to recover from bankruptcy are those people who were actually bankrupt and were able to recover. There is a rainbow after the rain.

What’s painful about bankruptcy is that you have to accept that you have lost control over our finances to the point that you no longer have resources.

In what instances is a person almost bankrupt? Ponder on these questions. When you pay your credit cards, do you always only pay the minimum amount due? Do you have collection agents of bills pestering you? Are you overwhelmed when management of your finances are brought up? Are you using credit cards to buy stuff that are essential for everyday use?