Yellob

BANKRUPTCY

DEFINATION:

A bankruptcy is a legal proceeding which involving a person or institution to repay its outstanding debts.

In other words:

Bankruptcy is a process to repay on demand by the debtors to its creditor.

“Bankruptcy is also known as the liquidation of assets” and the reorganization of bankruptcy.

INTRODUCTION:

There are many countries are facing bankruptcy. Pakistan is also facing the bankruptcy. The international monetary fund is the best and last option for its assistance. In bankruptcy the court take part in distribution of debtor property to its creditor for making payment.  The court appoints a trustee for sell out the property and making payment easier to pay the debt to its creditor.

ADVANTAGES AND DISADVANTAGES OF BANKRUPTCY:

ADVANTAGES OF BANKRUPTCY:

• The main advantage of bankruptcy is that the debtor may obtain a fresh financial start ups.
• It is helpful in canceling the unsecured debts.
• You can lien many fixed assets in its own custody like house use car.
• You can not fire your own jobs but must pay your debts.
• The collection must be done from your assets.
• You can avoid from bankruptcy for taking loan outside sources.
• You can save your home and car for applying different methods.

DISADVANTAGES OF BANKRUPTCY:

• Bankruptcy is so harsh for your future transactions.
• Your credit record may be affected.
• You can suffer for getting mortgage or loan from financial institution.
• Student loan is also may suffers the student career.

Tags: Advantages of Bankruptcy, Bankruptcy, Disadvantages of Bankruptcy, Financial Startups, Liquidation of Assets, Repayment of Debts