Information and forms to answer your questions about the risks of declaring bankruptcy, and what the long-term and short-term effects are.
What is bankruptcy?
Bankruptcy is a legal process under which a person or company (the debtor) publicly declares that it is unable to pay its debts. Creditors may file a bankruptcy petition against a debtor (referred to as involuntary bankruptcy) to try to recoup a portion of what they are owed. In the majority of cases, however, bankruptcy is initiated by the debtor (this is called voluntary bankruptcy).
What is receivership?
Receivership is a court-ordered appointment of a receiver to take custody of the property, profits and business of a party to a lawsuit or a debtor, to preserve that property. This process is used only if there is a risk that the property might be removed or disposed of before there is a final decision in the lawsuit, or to give the receiver control over the finances of an insolvent debtor for the benefit of its creditors.