Bankruptcy Basics

For many people, bankruptcy might sound like an ominous concept. In many cases, however, it is often the last recourse for a debtor who is unable to pay his or her creditors. There are times when bankruptcy is your best way out of a difficult situation.

Bankruptcy is a process that notifies all creditors of the debtor’s inability to pay. Creditors normally have to settle for pennies on the dollar. This video explains that new bankruptcy laws provide creditors with an unlimited time to pursue a debtor. This means that if the debtor’s fortunes change, the debtor will have to pay back his or her debts.