What is the Definition of Bankruptcy?

Bankruptcy

Noun

Definition: Identifies whether a borrowing entity has filed for bankruptcy in the past. Bankruptcy - court proceedings to relieve the debts of an individual or business unable to pay its creditors. An individual, firm, or corporation who, through a court proceeding, is relieved from the payment of all debts. Bankruptcy may be declared under one of several chapters of the federal bankruptcy code.

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