Bankruptcy Definition and Legal Meaning
On this page, you'll find the legal definition and meaning of Bankruptcy, written in plain English, along with examples of how it is used.
What is Bankruptcy?
(n) Bankruptcy is the situation in which the liabilities of a person or business entity exceeds the assets and properties owned by them and such entity has no means to settle the dues to their creditors fully. Courts declares an entity as bankrupt based on the petition moved by such person or entity.