Bankrupt

Topics: Bankruptcy, Debt, Insolvency Pages: 21 (7364 words) Published: August 28, 2013
Bankruptcy
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"Bankrupt" redirects here. For the album by Phoenix, see Bankrupt!.

Notice of closure attached to the door of a computer store the day after its parent company declared "bankruptcy" (strictly, put into administration) in the United Kingdom Bankruptcy is a legal status of a person or other entity that cannot repay the debts it owes to creditors. In most jurisdictions, bankruptcy is imposed by a court order, often initiated by the debtor. Bankruptcy is not the only legal status that an insolvent person or other entity may have, and the term bankruptcy is therefore not a synonym for insolvency. In some countries, including the United Kingdom, bankruptcy is limited to individuals, and other forms of insolvency proceedings (such as liquidation and administration) are applied to companies. In the United States, bankruptcy is applied more broadly to formal insolvency proceedings. Contents

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* 1 Etymology
* 2 History
* 3 Modern law and debt restructuring
* 4 Fraud
* 5 By country
* 5.1 Argentina
* 5.2 Australia
* 5.3 Brazil
* 5.4 Canada
* 5.4.1 Duties of trustees
* 5.4.2 Creditors' meetings
* 5.4.3 Consumer proposals
* 5.5 China
* 5.6 Ireland
* 5.7 India
* 5.8 The Netherlands
* 5.9 Russia
* 5.10 Switzerland
* 5.11 Sweden
* 5.12 United Kingdom
* 5.12.1 Pensions
* 5.12.2 Proposed reform
* 5.13 United States
* 5.13.1 Chapters
* 5.13.2 Exemptions
* 5.13.3 Bankruptcy Abuse Prevention and Consumer Protection Act * 5.14 Europe
* 6 See also
* 7 References
* 8 Further reading
* 9 External links
Etymology[edit source | editbeta]
The word bankruptcy is derived from Italian banca rotta, meaning "broken bench", which may stem from a custom of breaking a moneychanger's bench or counter to signify his insolvency, or which may be only a figure of speech.[1] History[edit source | editbeta]

Main article: History of bankruptcy law
In Ancient Greece, bankruptcy did not exist. If a man owed and he could not pay, he and his wife, children or servants were forced into "debt slavery", until the creditor recouped losses through their physical labour. Many city-states in ancient Greece limited debt slavery to a period of five years; debt slaves had protection of life and limb, which regular slaves did not enjoy. However, servants of the debtor could be retained beyond that deadline by the creditor and were often forced to serve their new lord for a lifetime, usually under significantly harsher conditions. An exception to this rule was Athens, which by the laws of Solon forbade enslavement for debt; as a consequence, most Athenian slaves were foreigners (Greek or otherwise). In the Old Testament, every seventh year is decreed by Mosaic Law as a Sabbatical year wherein the release of all debts that are owed by members of the community (but not "foreigners") is mandated.[2] The seventh Sabbatical year, or forty-ninth year, is then followed by another Sabbatical year known as the Year of Jubilee wherein the release of all debts is mandated, for fellow community members and foreigners alike, and the release of all debt-slaves is also mandated.[3] The Year of Jubilee is announced in advance on the Day of Atonement, or the tenth day of the seventh Biblical month, in the forty-ninth year by the blowing of trumpets throughout the land of Israel. In Islamic teaching, according to the Qur'an, an insolvent person was deemed to be allowed time to be able to pay out his debt. This is recorded in the Qur'an's second chapter (Sura Al-Baqara), Verse 280, which notes: "And if someone is in hardship, then let there be postponement until a time of ease. But if you give from your right as charity, then it is better for you, if you only knew." The Statute of Bankrupts of...

References: Trustees in bankruptcy, 1041 individuals licensed to administer insolvencies, bankruptcy and proposal estates and are governed by the Bankruptcy and Insolvency Act of Canada.
| This section requires expansion. (March 2009) |
Ireland[edit source | editbeta]
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