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Claim Bankruptcy

Claim bankruptcy can mean different things. It depends upon the context. To claim bankruptcy is to prepare yourself to file for this form of legal protection. If you claim bankruptcy, in the United States and Canada, you are asking the legal system to grant you an automatic stay. If, however, you are making a claim in bankruptcy, you are asking the court through the trustee to receive the payment do you. In the former case, you are the debtor; in the latter usage of the term, you are a creditor. As a debtor, you may need to pass a means test or provide proof under your country's bankruptcy act or laws that your require this form of relief from debt. If you are a creditor you will need to provide proof that you are indeed a bona fide creditor. Like the debtor, you will have to file papers with the court.

Fast Facts

  • Bankruptcy is an ancient right dating back to the code of Hammurabi in Babylon 1792-1950 B. C. It set the rules for settling debts.

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