The Unique Finance Blog

The most frequent question asked by people who file for personal bankruptcy is whether the creditors will stop calling. The answer to this question is yes and it is important to know the various procedures involved in the filing of bankruptcy for debtors to be shielded from creditors. The courts, after accepting a person’s bankrupt status, contact all the concerned creditors and intimate them that they are legally bound to stop calling the bankrupt person directly.

The word bankruptcy is derived from the combination of two Latin words ‘banco’ meaning a table and ?ruptus? meaning ‘broken’, implying the broken state of an entrepreneur?s business. Bankruptcy can be defined as a legally declared inability or incapability of individuals or organizations to pay their creditors.