Personal bankruptcy

Personal bankruptcy – within the meaning given by the Litigation Law only in some countries, “personal bankruptcy” is the application filled in by a physical individual where they state that their personal assets are not enough to cover all their debts, so they seek release of all their current debts, in order to continue living in a normal way. The term should be separated from the corporate bankruptcy, which is related to impossibility of a company to pay its creditors so it goes into insolvency or liquidation procedure prior termination. Bear that in many countries it is not possible for a physical individual to apply for personal bankruptcy – but only corporate bodies are entitled to. See also “insolvency”.

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