Bankruptcy

Definition of 'Bankruptcy'

Bankruptcy is a legal proceeding where an insolvent person can be relieved of of financial obligations, but looses control over bank accounts, and future financial options. Bankruptcy is a last resort for those with debt problems, and although while it may wipe the slate clean (to some extent) in terms of debt, it is extremely harmful to your credit rating, and will no doubt effect the way you are handled by financial organisations in the future.

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