Definition: Bankruptcy is a legal procedure taken when the trader (debtor), whether it is a company or a person, becomes unable to pay the amounts owed by her/him (debts) to their owners (creditors) on time. It aims to liquidate the trader's assets and properties and distribute their value to creditors fairly, relying on the provisions and legal legislation which are recognized in the commercial law, in a manner that guarantees creditors the restoration of their rights; all in order to support confidence and credit in commercial transactions.


More on corporate law: Corporate Haven, Out of Court Workout, Preventive Composition.


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