It is assumed that the word ‘Bankrupt’ came from the Italian word ‘Bankruptus or Bancaruptus’ or from French word ‘Bankaroute’. Banca or Banque means ‘beanch’ and rotte, Banca rotta, route means ‘ to break’. So Bankoruptus, Bancaruptus or Bancaroute means to break the bench. In early age of the banking business a group of Italian businessmen used to make monetary transactions sitting on the long benches in various places especially in the Lambady Street. If any businessman becomes unable to pay back the deposited money then the depositor’s used to break the benches. This concern of breaking the bench was known as ‘Bankoruptus, Bancaruptus or Bancaroute.’ So, ‘Bankrupt’ is originated by the events of breaking benches.
Generally ‘Bankrupt’ means financial inability. The person whose liabilities is more than his assets and is unable to pay his debts is considered as bankrupt. It is the responsibility of the court to enquiry the insolvency act of a person and if he is proved to be insolvent is considered as bankrupt.
According to Oxford Dictionary of Business- “The state of individuals who are unable to pay their debts and agents whom a bankruptcy order has been made by a court is called bankruptcy.”
According to the bankruptcy act 1977, the following conditions are considered to prove bankruptcy-
From the above discussion we can say that bankrupt is-
1. Financially insolvent
2. Is processed by the court.
3. A person can’t declare himself as bankrupt.
Finally we can say that the fact ‘Bankruptcy’ is processed by court. Any person or institutions can’t declare itself or himself a ‘Bankrupt’.
Generally ‘Bankrupt’ means financial inability. The person whose liabilities is more than his assets and is unable to pay his debts is considered as bankrupt. It is the responsibility of the court to enquiry the insolvency act of a person and if he is proved to be insolvent is considered as bankrupt.
According to Oxford Dictionary of Business- “The state of individuals who are unable to pay their debts and agents whom a bankruptcy order has been made by a court is called bankruptcy.”
According to the bankruptcy act 1977, the following conditions are considered to prove bankruptcy-
- if the activities of a person that indicates Bankruptcy.
- If liabilities are greater than Assets.
From the above discussion we can say that bankrupt is-
1. Financially insolvent
2. Is processed by the court.
3. A person can’t declare himself as bankrupt.
Finally we can say that the fact ‘Bankruptcy’ is processed by court. Any person or institutions can’t declare itself or himself a ‘Bankrupt’.