FIN 502 Chapter Notes - Chapter 13: Unsecured Creditor, Disclose, Financial Institution
30 Nov 2014
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Legal status of a person or other entity that can"t repay the debits it owes to creditors: in bankruptcy, a person"s assets are used to pay credits when the person is insolvent meaning: You can"t pay your debts as they are due to be paid. You can choose to go into bankruptcy (most common) or your creditors can force you into it. Bankruptcy a legal process that can provide relief to honest but unfortunate debtors: when you are in bankruptcy, no unsecured creditor can garnishee your wages or initiate any other collection against you. Bankruptcies generally don"t affect the rights of secured creditors ex. Those who have a valid security against your property, such as a car or a house. A bankruptcy can only be filed through a trustee in bankruptcy, an individual licensed by the. Office of the superintendent of bankruptcy (osb) to administer the bankruptcy process.
