Bankruptcy is where a person or business owes too much money to other people and cannot repay the money. The person/business applies for bankruptcy to help them with their debts.
Bankruptcy is a legal procedure. It allows an individual or business to be released from money that they owe under certain conditions.
You might apply for bankruptcy voluntarily if you struggle with debts, or the people you owe money to might ask a court to declare you bankrupt.
Applying for bankruptcy is a very serious thing to do, so it is really important to speak to qualified professionals that can help you to decide if it’s the right option.
Bankruptcy is not always the only option for people facing serious money problems.
Disclaimer: This website provides information for guidance and educational purposes only. The Grown-Up School does not provide regulated financial advice. You can seek independent financial advice from a suitably qualified and regulated professional advisor. Check out our disclaimer policy for more information.
What happens when someone is made bankrupt? 🤷♀️💸
One of the first things that might happen when someone goes bankrupt is that they lose all their assets and belongings.
This can be very hard for people who have built up their lives over many years.
The government might sell things that the person owns to help repay the money.
People who have been made bankrupt may struggle to find a job involving money, or borrow money.
So that’s it!
Hopefully you’re feeling more confident about understanding bankruptcy.
If you know any friends or family members who might benefit from learning about bankruptcy, share this post with them!
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