Bancruptcy petition

Bankruptcy petition – Within the meaning, given by the Commercial Law this legal term details the claim, submitted by the creditor towards the court for starting an insolvency procedure of local corporate body or private individual – debtor. The legal effect is to divert most of the debtor’s assets and debts to the administration of a third person. Usually, this is a bailiff or trusted assignee, depending on the local legislation). Who will use these to pay any outstanding debts towards the creditors. Bankruptcy leads the debtor towards a statutory period during which his or her commercial and financial affairs are ended, considering the future liquidation.

See also “Liquidation”

See also “Insolvency”

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