Business Bankruptcy

A bankruptcy case in which the debtor is a business or an individual involved in business and the debts are for business purposes.

A declaration by a company that they are unable to pay their creditors. A legal proceeding that relieves you of the responsibility of paying your debts or provides you with court protection while you try to repay your debts. Typically, there are two types of bankruptcies -- liquidation, in which your debts are wiped out (discharged) and reorganization, in which you provide the court with a plan for how you intend to repay your debts.