Changes

==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  

*[http://en.wikipedia.org/wiki/16th_century 1533]

*[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  

*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]].[http://en.wikipedia.org/wiki/Bankrupt]

'''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]]