GLOSSARY

Bankruptcy

Bankruptcy


Bankruptcy is when a court legally declares you unable to pay your creditors. If you default on a personal loan or another financial product, a creditor may aim to have you declared bankrupt as a means of reclaiming some of their cash. It’s also possible to enter voluntary bankruptcy. While bankruptcy will ruin your credit file in the short term, it is a chance for you to wipe your financial slate clean and start again.



Sign up for our newsletter

Keep up with the latest financial tips and updates from NOW Finance