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What is Bankrupt?

Updated: 8/20/2023
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Wiki User

9y ago

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When a company goes bankrupt this means that it has more expenses than profits that they are taking in. It also means that they can go in front of a court to determine if they can receive forgiveness for some of the debts that they owe to their creditors.

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9y ago
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14y ago

To file for financial protection under one of the chapters of the Federal Bankrutpcy laws. Normally, it allows for debt collections to stop, while the court figures out how to distribute assets to those that are owed, or while a financial plan is derived to resolve the financial crisis.

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9y ago

It is legally declared of insolvent

The simple answer used to be that you were bankrupt if you could not pay your bills as they came due.

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