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What is Bankrupt?
Bankrupt is when a person or an organization becomes insolvent, that is one cannot pay back its debts to creditors.
To be considered bankrupt, it must be a court order that does this, which means that a creditor have to submit a court order to force the debtor to pay up.
If the debtor cannot pay up, then the court will issue a status to the debtor that the debtor is unconditionally/conditionally bankrupt and have to liquidate whatever he/she or the organization owns so that he/she or the organization can pay something back to the creditors.
The status of bankruptcy will remain until the creditors has been fully repaid afterwhich the debtor will now depend if the courts will grant them to be officially or unofficially discharged from bankruptcy.
Officially discharged from bankruptcy means that the debtor no longer owe anyone or any entity outstanding in debts.
Unofficially discharged from bankruptcy means that the debtor may still have a condition attached that requires the debtor to fully comply before the debtor reaches the status of an official discharge from bankruptcy.
Bankrupt is when a person or an organization becomes insolvent, that is one cannot pay back its debts to creditors.
To be considered bankrupt, it must be a court order that does this, which means that a creditor have to submit a court order to force the debtor to pay up.
If the debtor cannot pay up, then the court will issue a status to the debtor that the debtor is unconditionally/conditionally bankrupt and have to liquidate whatever he/she or the organization owns so that he/she or the organization can pay something back to the creditors.
The status of bankruptcy will remain until the creditors has been fully repaid afterwhich the debtor will now depend if the courts will grant them to be officially or unofficially discharged from bankruptcy.
Officially discharged from bankruptcy means that the debtor no longer owe anyone or any entity outstanding in debts.
Unofficially discharged from bankruptcy means that the debtor may still have a condition attached that requires the debtor to fully comply before the debtor reaches the status of an official discharge from bankruptcy.