Difference between revisions of "Bankrupted"
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==Origin== | ==Origin== | ||
modification of Middle French & Old Italian; Middle French banqueroute bankruptcy, from Old Italian bancarotta, from banca bank + rotta broken, from [[Latin]] rupta, feminine of ruptus, past participle of rumpere to break | modification of Middle French & Old Italian; Middle French banqueroute bankruptcy, from Old Italian bancarotta, from banca bank + rotta broken, from [[Latin]] rupta, feminine of ruptus, past participle of rumpere to break | ||
| − | *[ | + | *[https://en.wikipedia.org/wiki/16th_century 1533] |
==Definitions== | ==Definitions== | ||
*1a : a [[person]] who has done any of the [[acts]] that by [[law]] entitle creditors to have his or her estate [[administered]] for their benefit | *1a : a [[person]] who has done any of the [[acts]] that by [[law]] entitle creditors to have his or her estate [[administered]] for their benefit | ||
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*2: a person who is completely lacking in a particular desirable [[quality]] or attribute <a [[moral]] bankrupt> | *2: a person who is completely lacking in a particular desirable [[quality]] or attribute <a [[moral]] bankrupt> | ||
==Description== | ==Description== | ||
| − | '''Bankruptcy''' is simply the inability of an [[individual]] to secure any more [[money]] from a bank. It is a device that informs banks that an individual or [[organization]] will not be able to pay monies owed if any more money is lent. Once declared 'bankrupt', the bankrupt cannot operate a BANK account or borrow monies from a bank until discharged as a bankrupt. The device came into [[existence]] after it became clear that something had to be done about the circumstance of borrowing from one bank to 'pay-off' the loans of another where there was no monies or assets available to satisfy the [[debts]] in the first place. One obvious [[consequence]] is a failure to pay creditors. Creditors file a bankruptcy [[petition]] against an individual or [[organization]] debtor ("involuntary bankruptcy") for several reasons. It could be an [[effort]] to recoup a portion of what they are owed or initiate a restructuring or sometimes clear their own [[books]] of bad [[debt]] and cease doing [[business]] with an entity that clearly is in no position to be doing [[business]] on credit terms. Because of the [[legal]] requirement to trade whilst 'solvent' , it is now often the case that bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the insolvent [[individual]] or [[organization]]). An involuntary bankruptcy petition may not be filed against an [[individual]] consumer debtor who is not [[engaged]] in [[business]].[ | + | '''Bankruptcy''' is simply the inability of an [[individual]] to secure any more [[money]] from a bank. It is a device that informs banks that an individual or [[organization]] will not be able to pay monies owed if any more money is lent. Once declared 'bankrupt', the bankrupt cannot operate a BANK account or borrow monies from a bank until discharged as a bankrupt. The device came into [[existence]] after it became clear that something had to be done about the circumstance of borrowing from one bank to 'pay-off' the loans of another where there was no monies or assets available to satisfy the [[debts]] in the first place. One obvious [[consequence]] is a failure to pay creditors. Creditors file a bankruptcy [[petition]] against an individual or [[organization]] debtor ("involuntary bankruptcy") for several reasons. It could be an [[effort]] to recoup a portion of what they are owed or initiate a restructuring or sometimes clear their own [[books]] of bad [[debt]] and cease doing [[business]] with an entity that clearly is in no position to be doing [[business]] on credit terms. Because of the [[legal]] requirement to trade whilst 'solvent' , it is now often the case that bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the insolvent [[individual]] or [[organization]]). An involuntary bankruptcy petition may not be filed against an [[individual]] consumer debtor who is not [[engaged]] in [[business]].[https://en.wikipedia.org/wiki/Bankrupt] |
[[Category: Law]] | [[Category: Law]] | ||
[[Category: Economics]] | [[Category: Economics]] | ||
Latest revision as of 23:45, 12 December 2020
Origin
modification of Middle French & Old Italian; Middle French banqueroute bankruptcy, from Old Italian bancarotta, from banca bank + rotta broken, from Latin rupta, feminine of ruptus, past participle of rumpere to break
Definitions
- 1a : a person who has done any of the acts that by law entitle creditors to have his or her estate administered for their benefit
- b : a person judicially declared subject to having his or her estate administered under the bankrupt laws for the benefit of creditors
- c : a person who becomes insolvent
- 2: a person who is completely lacking in a particular desirable quality or attribute <a moral bankrupt>
Description
Bankruptcy is simply the inability of an individual to secure any more money from a bank. It is a device that informs banks that an individual or organization will not be able to pay monies owed if any more money is lent. Once declared 'bankrupt', the bankrupt cannot operate a BANK account or borrow monies from a bank until discharged as a bankrupt. The device came into existence after it became clear that something had to be done about the circumstance of borrowing from one bank to 'pay-off' the loans of another where there was no monies or assets available to satisfy the debts in the first place. One obvious consequence is a failure to pay creditors. Creditors file a bankruptcy petition against an individual or organization debtor ("involuntary bankruptcy") for several reasons. It could be an effort to recoup a portion of what they are owed or initiate a restructuring or sometimes clear their own books of bad debt and cease doing business with an entity that clearly is in no position to be doing business on credit terms. Because of the legal requirement to trade whilst 'solvent' , it is now often the case that bankruptcy is initiated by the debtor (a "voluntary bankruptcy" that is filed by the insolvent individual or organization). An involuntary bankruptcy petition may not be filed against an individual consumer debtor who is not engaged in business.[1]
