Bankruptcy - How to Succeed
Overview
Bankruptcy may be defined as the legally declared inability of an individual or organisation to pay their creditors, who represent a third party which supplied, to the individual or organisation, a product or service for which they are legally entitled to receive full settlement.
As part of a process called involuntary bankruptcy, a creditor may instigate bankruptcy proceedings against a debtor in order to secure the funds for which they are owed. However, in the majority of cases, such proceedings are not required. Under the auspices of a voluntary bankruptcy, the bankruptcy process is initiated by the debtor, which means that it is filed by the bankrupt individual or organisation.
History
In the Old Testament of the Bible and Hebrew Scriptures, the laws of Moses laid down that one Holy or Jubilee Year should take place every 50 years. Accordingly, on this day, all debts would be expunged from all Jews, and all debt slaves would be freed from their encumbrances, this being part of a heavenly command.
In fact, the Hebrew, or Jewish law of debt forgiveness, can be found in the Bible, in the book of Deuteronomy 15:1-2 which gives gives clear instructions on the release from debt of all encumbered individuals every seven years. In the book of Nehemiah chapter 5, there is an entry relating to debt forgiveness among the Jewish repatriates to Jerusalem.
Further, bankruptcy did not exist in ancient Greece, which relates to the period from circa 1100 BC and the Dorian invasion, to 146 BC and the Roman conquest of Greece after the battle of Corinth. In such times, only locally born adult males could be classified as citizens. Accordingly, it was only the fathers who were entitled to legal ownership of property. Thus, every member of his family would be forced into what was called debt slavery if a father was unable to settle his outstanding debts. This would include his wife, children and servants. Such a status would be retained until the creditor had received due compensation by way of their combined physical labour.
In many city states in ancient Greece, debt slavery was restricted to a period of five years, and debt slaves were given the protection of life and limb, which regular slaves did not enjoy. On the other hand, servants of the debtor were not so fortunate. In fact, they could be retained beyond the five year deadline by the creditor and were often forced to serve their new master for possibly even a lifetime, usually under significantly harsher conditions.
The term Bankruptcy has its origins in the ancient Latin word bancus, which refers to a long bench or possibly a table, and ruptus which means broken. The term bank originally referred to a bench.
The first bankers positioned this bench in public places, in markets, fairs, and such like, and upon which they conducted their financial affairs. They also wrote their bills of exchange, which was a written order by the drawer, who withdraws the funds, to the drawee, the banker, to pay money to the payee, who requires the funds.
Therefore, when a banker's business failed, he broke his bank, that is to say his bench. In this way, the public would be made aware of the fact that the person to whom the bank belonged was no longer able to continue his banking business.
Related Tags: bankruptcy, personal, bankrupt, types, broke, debtors, penniless, bankruptcy-how-to-succeed, in administration, gone bust
Peter Radford writes Articles with Websites on a range of subjects, under the heading: Subject - How To Succeed. Bankruptcy Articles cover History, Role in Europe/US, Types, Prevention. Website has many more.
View his Website at: bankruptcy-how-to-succeed.com
View his Blog at: bankruptcy-how-to-succeed.blogspot.com
Recent articles in this category:
- Benefits of Online Accounting and Bookkeeping
Accounting and bookkeeping are some of the most delicate and time-consuming jobs. It really gets d - Rodman & Rodman, P.c. Shares Cash Flow Tips in a Bad Economy
So how can a small business survive in a bad economy? Larry Rice, CPA, Director of Strategic Con - Desston *** Chartered Certified Accountants ***
Our ServicesOur services are varied and include: Accounting Regular management accounts and report - Irs Debt
Debt owed to the Internal Revenue Service (IRS) is called IRS debt or tax debt. IRS debt may be a - Money Transactions Worldwide
What is Moneybookers? What are the benefits of using Moneybookers? - Arc of Greater Plymouth to Hold Children's Holiday Party on December 4th in Marshfield
DATELINE: MARSHFIELD AND - Adverse Credit Loans: Loaded With Facilities for Poor Scorers
To achieve financial support even after possessing bad credit records one should go for the adverse - The Lowdown on Accounting Careers
Accounting careers are in great demand, these days. This is because they are providing some amazin - Budgeting for Retirement
Many people think that once they retire budgeting their money is going to be a lot harder, this is - Budgeting You Money When Living in an Expensive City
The cost of living in a city increases almost everyday. With just the average rent of a two room Ne
Most viewed articles in this category:
- Successful Payroll Management
Yet, successful payroll management doesn't have to be a chore. Further, you can find significant adv - Knowing When to Hire a Bookkeeper
Do you love the thought of handling the financial books for your business? For most of us, unless yo - Benefits of Bookkeeping Outsourcing Online for Accounting Firms
Bookkeeping is a monotonous task for accounting firms. It takes long and tedious hours to maintain t - Spank Your Bookies
Bettor A: The Ego Bettor - This bettor is primarily motivated by the feeling of superiority that he - Legal Applications of official Paper Shredder at Accounting Departments
The way shredders are traditionally purchased and sold is by an uneducated consumer talking to an un - Do you Need Back Office Outsourcing?
Have you ever imagined how important the back office process is for the success of any organization? - Meet Deadlines and Earn Profit via Tax Preparation Outsourcing
Tax preparation is the information given out by an individual or an organization to a government bod - Internal Audit Still Faces Talent Shortage
More than half of the 400 respondents to PricewaterhouseCoopers' second annual report..."In tod - Computerized Financial Accounting - Methods and Practices - Use of software in Accounting
Complete financial accounting course or tutorial covers a range of following topics. It is being eva - Global Venture Capital: Ernst and Young Reports on Important Trend
"The convergence of globalization, Web 2.0, media and innovations in IT and life sciences are f