There are several definitions of the bankruptcy. It is possible to find one of them in English dictionary and here it is – “bankruptcy is an inability to discharge all your debts as they come due”. But there is a very simple one: “bankruptcy is considered to be one way of dealing with debts when you cannot pay them off”. In the whole world a great number of people want to know if bankruptcy is good or bad. At all times everyone was trying to avoid it. Bankruptcy was considered to be one of the things that only irresponsible people could do. But that is just a pack of lies.

Nowadays, in the case when an individual cannot pay off his debts and is going bankrupt, bankruptcy becomes a reasonable, officially permitted and helpful method for many people, which gives an opportunity to reduce the difficulties and problems in bad debt situation. Remember anyone can go bankrupt – individual member or even any partnership, or company.

One can go bankrupt in three ways:

1) first way – by the debtors, that is voluntarily;
2) second way – by the creditor, that means involuntarily;

Even if you do not accept the proceedings or do not want to agree with them a bankruptcy order will be made even in this case. If you do not take into consideration the creditor’s claim, you have to try to reach a settlement before the bankruptcy petition will be heard. Trying to do so, after the bankruptcy order is made, is both – difficult and expensive.

Is there any logical solution in the present day for those people who have bad debts? Not many, actually. For a great number of people the access to the IVA (Individual Voluntary Arrangement procedure) was limited by the creditors. They refused to do any repayment, only when they consider it is worth their time. That sounds rather funny because it turns out that the creditors refuse to accept the payments of the debtors. As a replacement for this, the creditors want their clients to stay away from bankruptcy and they allow them to do monthly payments which will almost never repay credit, even in some weeks. Bankruptcy is a legal option which allows to get rid of your debts. Although the bankruptcy (one can find the definition – “economic failure”) is a negative phenomenon, it has several advantages. For example:

1. for the person who is going bankrupt, bankruptcy makes discharge available in one year (but in some cases this term differs).
2. bankruptcy lets the affairs of the debtor to be carried out.

Do not allow anyone to make a fool of you. Those people, who have experienced the bankruptcy, admit that it is definitely something that you would not like to go through. Bankruptcy is one of the points of five harmful things that can happen in our life, next to divorce, illnesses, disability, and loss of a lover.


The cultural transformations that have made people accept life in debt have had a direct impact on the approach youngsters take to money matters, which could lead to negative consequences in the long run as many of the next generation would resort to IVAs to cope with serious financial issues.

When we put efforts into our work and get paid for this, we get an amazing feeling of satisfaction. Our hard hard work seems to have been remunerated financially. We go shopping and buy the items we need and the items we simply want.