Bankruptcy laws adjust to times
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Bankruptcy, the process by which a debtor is declared unable to pay debts and the debtor’s property is administered for the benefit of creditors, has assumed particular importance in the wake of recent worldwide economic conditions. In fact, bankruptcy has been a part of legal processes for centuries. The word itself, “bankruptcy”, is derived from the Italian phrase banca rotta or “broken bench”, which refers to the medieval practice of destroying a businessman’s trading bench for a failure to pay his debts. Historically, bankrupts have been treated harshly _ often as criminals, but as the need to find an economically sound solution to the problems caused by failing businesses has periodically increased, bankruptcy has developed into a system designed to allow bankrupt individuals or companies the opportunity of reorganisation and rehabilitation, in addition to meeting the Source : accessmylibrary.com |