BANKRUPTCY
HOW TO SUCCEED



Bankruptcy

Overview

Bankruptcy refers to the inability of an individual or organisation to pay their creditors, which refers to those parties who have provided a product or service that has yet to be paid for by the recipient of that product or service.

Involuntary bankruptcy is a process by which a creditor may instigate proceedings against a debtor for bankruptcy in order to recover monies that are outstanding

However, in most cases, it is the debtor who is the initiator of any such proceedings. This is called voluntary bankruptcy, and is filed by the bankrupt individual or organisation.

History

Before the conquest of Greece by the Romans, the concept of bankruptcy did not exist. If a father, who was the sole legal owner of property at that time, could not settle his outstanding bills, then his entire family found themselves in a form of debt slavery. This status was maintained until the arrears were cleared through the toil of the family’s labour. However, some cities limited the period of such enforced labour to a maximum of five years.

The origin of the word bankruptcy dates back to the Latin words bancus, or table, and ruptus, or broken. The first bankers set up a bench in the markets and public places and conducted their financial affairs. However, should a banker’s business fail, he broke his bench, which was referred to as his bank, so that everyone knew that this particular bank was unable to trade.

Between 1557 and 1596, there were four state banks that were foreclosed in Spain. This was the first time that a country declared an institution bankrupt.

In 1705, an Anglo-American statute was introduced in which a bankrupt’s unpaid debts were waived on the proviso that he cooperated in the settlement of as much of the debt as he was able to accomplish.


Bankruptcy – How To Succeed


Peter Radford writes Articles with Websites on a wide range of subjects. Bankruptcy Articles cover History, Types, Protection, Prevention, Bankruptcy in Europe, UK and US.
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