Bankruptcy

Bankruptcy refers to a legal proceeding carried out to allow businesses or individuals freedom from their debts, while also providing creditors an opportunity for repayment. Bankruptcy filing can allow a business a fresh start, preventing creditors to take legal actions, but it can also make it difficult for the business to borrow in the future - carrying negative financial consequences that might affect petitioners for years. It is imposed by a court order, often initiated by the debtor, bankruptcy filings prevent or delay repossessions, foreclosures, and wage garnishment.