Definition of Bankruptcy

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Debt Consolidation Loan Glossary and Related Financial Terminology:


Related Consumer Finance Programs - The following sub-directories of companies offer a wide variety of financial programs to assist you with the management of your finances. Consolidate debt with a consolidation loan or use a debt counseling service or mortgage refinance for help with the consolidation of your charge card debt and other monthly payments.

  • Credit Debt Consolidation - If you have a large amount of  credit card and other debts, now may be a good time to consolidate your debt and lower your payments.
  • Debt Settlement Company - Are you finding yourself unable to meet your monthly budget because of too many credit card payments? Negotiating your debts may or may not be the right choice to get help with your financial situation. Compare programs designed for helping people with similar debt problems.

Bankruptcy Definition

Define Bankruptcy: Bankruptcy is the process whereby an individual or a corporation legally is declared to be unable to pay creditors and all or a portion of outstanding debts are simply discharged. Creditors may petition a court to declare forced bankruptcy of a debtor in a process known as involuntary bankruptcy. In the USA, it is rare for individuals to face involuntary bankruptcy.


Far more common is the process of voluntary bankruptcy where debtors seek bankruptcy protection from the courts. In theory, an individual can self-file for bankruptcy, but in actual practice a bankruptcy attorney should always be consulted. Unsurprisingly, they request payment up front. All bankruptcy proceedings are noted on the individual's credit report and remain on the report for a period of at least ten years.


Debt Consolidation Loan Glossary
Index: B
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