Bankruptcy

Bankruptcy is a legally declared inability
or impairment of ability of an
individual or organizations to pay their
creditors. Creditors may file a
bankruptcy petition against a debtor
("involuntary bankruptcy") in an effort
to recoup a portion of what they are
owed. In the majority of cases, however,
bankruptcy is initiated by the debtor
(a "voluntary bankruptcy" that is filed by
the bankrupt individual or organization.