While bankruptcy is certainly not the most desirable position to declare, learning about the subject and its process can be fascinating or at least informative. For people who deal with business or finances, learning the differences in bankruptcy between the United Kingdom and the United States, for example, can be very helpful and sometimes vital. This also goes for lawyers, who may one day have to deal with a bankruptcy case or who may even make this type of law their specialty. Either way, learning the differences in the two countries’ regards of bankruptcy can be informational for financial reasons.
The United States and the United Kingdom
Two of the best places to study for differences include the United States and the United Kingdom. In the UK, a state of bankruptcy usually lasts for only about twelve months, sometimes less. The bankruptcy ends when the official receiver files a certificate in court stating that his investigation into the bankruptcy is complete. This system is completely different from the system in the United States, and many citizens in the UK have a few concerns about the bankruptcy system in their country. They are concerned about whether this process encourages people to use bankruptcy to escape their debt and other financial problems, and they are also concerned about whether this legislation should be looked at.
In the United States, declaring bankruptcy is involved with both Federal and state laws, and the process for declaring bankruptcy is different than it is in the UK. There are also several chapters of bankruptcy in the United States that a person can file for. Liquidation is one of the most common forms of bankruptcy and is included under the chapter seven filing. The liquidation chapter helps to alleviate bankruptcy by selling an individual’s or company’s assets and then distributing them. Liquidation is also one of the most common forms of bankruptcy available.People can also look for rules that allow them to pay their debts with their future earnings. People who are facing a bankruptcy situation should consult a professional for advice