According to the dictionary, bankruptcy is a legally declared inability to pay your creditors (creditors are the people you owe money to).
The word bankrupt is believed to have originated in the Medieval Ages and comes from the Italian words banca rotta, meaning broken counter, and alludes to the custom of breaking a merchant’s marketplace table if he failed to pay his debts.
A few hundred years ago in Italy the banker’s table was broken by his customers, meaning in effect they put him into the state of bankruptcy.
Today, while it is possible for your creditors to petition or force you into bankruptcy, it is much more common for the debtor (the person who owes the money) to declare their inability to pay, meaning it is their decision to file for bankruptcy.
The bankruptcy process is governed by federal law, however certain exemptions and other rules are governed at the provincial or state level.
For more information on bankruptcy in different areas, please read the following articles:
Bankruptcy in Kitchener Ontario
Bankruptcy in Ontario
Bankruptcy Canada
Bankruptcy in the United States of America
If you are experiencing financial difficulty, please contact our Kitchener bankruptcy trustee for more information and a free initial consultation.
